Netherlands Joins US-Led Pax Silica Chip Alliance 2026

The Netherlands has formally joined Pax Silica, the US-led semiconductor alliance aimed at reducing global dependence on Chinese supply chains. The move elevates a key European player in the tech war and underscores the strategic importance of ASML, the Dutch company that is the sole manufacturer of extreme ultraviolet (EUV) lithography machines.

Pax Silica, or "Silicon Peace," was launched in December 2025 by the US State Department. It now counts 16 members, up from seven founding signatories. The Netherlands had participated as a non-signatory partner since the beginning, but this week Dutch Trade Minister Sjoerd Sjoerdsma traveled to Washington to finalize official membership in a meeting with US Commerce Secretary Howard Lutnick.

Why the Netherlands Is Critical to Pax Silica

ASML is the linchpin of the global chip industry. It is the only company capable of producing the EUV lithography equipment used by TSMC, Samsung, Intel, and SK Hynix to manufacture advanced semiconductors. Without ASML's machines, the most cutting-edge chips cannot be made.

This bottleneck position explains why the Netherlands' formal adherence to Pax Silica is one of the most significant geopolitical moves of 2026. By joining the alliance, the Dutch government aligns itself more closely with US efforts to build semiconductor, AI, and rare earth supply chains that are decoupled from China.

What Pax Silica Aims to Achieve

Pax Silica seeks to create secure, resilient supply chains for critical technologies. The initiative focuses on three pillars: semiconductors, artificial intelligence, and rare earth minerals. The goal is to reduce reliance on Chinese sources and to promote like-minded partnerships among member countries.

Membership has grown steadily since its launch, reflecting growing concern over China's dominance in key sectors. The alliance includes major chip-producing nations and economies with significant technological capabilities.

• Semiconductors: Coordinate policies to secure advanced chip manufacturing and equipment.
• Artificial intelligence: Promote safe and ethical AI development and deployment.
• Rare earths: Diversify supply chains for critical minerals used in electronics and defense.
• Supply chain resilience: Reduce vulnerabilities by fostering alternative sources and production capacity.
• Export controls: Align restrictions on sensitive technology exports to strategic rivals.

Frictions Remain Despite Formal Membership

While the Netherlands' official entry into Pax Silica marks a diplomatic milestone, it has not resolved all tensions. Minister Sjoerdsma acknowledged to the press that both countries share the objective of reducing dependence on China, but differences persist.

These frictions likely stem from divergent commercial interests. ASML has significant sales to Chinese customers, and the Dutch government has faced pressure to balance national security concerns with economic interests. The US has repeatedly urged the Netherlands to tighten export controls on advanced chipmaking equipment.

The ASML Factor in the US-China Tech War

ASML's EUV machines are essential for producing the most advanced chips, which power everything from smartphones to AI systems. China has been unable to access these machines due to export restrictions, slowing its progress in cutting-edge semiconductor manufacturing.

The Netherlands' formal alignment with Pax Silica reinforces the US strategy of keeping critical technology out of China's reach. However, it also raises questions about how far the Dutch government will go in restricting ASML's exports.

What to Watch Next

The Netherlands' formal membership in Pax Silica could lead to tighter export controls on ASML's equipment, particularly for advanced EUV systems. The US may push for further alignment on restrictions for older DUV machines as well. The background to this story is set out in China's Lithography Breakthrough Sinks ASML Stock. A related thread runs through ASML: The Single Machine Behind Every Advanced Chip. Earlier coverage in ASML Can't Keep Up With AI Chip Demand: What It Means for Tech shows how the argument developed.

At the same time, the Dutch government will need to manage its economic relationship with China, which remains a significant market for ASML. The balance between security and commerce will be closely watched by industry observers. A closer look at the same subject appears in ASML Supplier Sindlhauser Faces China Raw Material Crisis. Anyone following the wider picture can start with ASML Chip Equipment Price Hikes: What It Means for Tech. The same theme surfaces in ASML and Zeiss Name Hyper-NA as Next EUV Lithography Step, which takes a different angle.

As Pax Silica expands, it may attract more countries seeking to secure their place in the global tech supply chain. The alliance's success will depend on whether members can harmonize policies and effectively counter China's influence. Context on how this played out before sits in ASML CEO Warns: Squeezing China May Create a Competitor. A companion piece, China's Laser Trick Bypasses 2,000 ASML Patents in EUV Lithography, approaches the same subject from another angle.

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