ASML's CEO Discusses Export Restrictions to China and US Economic Influences

Thursday, 5 September 2024, 06:00

ASML's CEO highlights that the export curbs on China stem more from US economic interests than national security concerns. The escalating chip war has seen the Netherlands pressured to impose restrictions on ASML's technology. As tensions mount, the implications for ASML and the semiconductor market are significant.
Thenextweb
ASML's CEO Discusses Export Restrictions to China and US Economic Influences

Export Curbs and Economic Interests

Reports indicate that the Netherlands plans to implement new export restrictions on ASML equipment to China, largely under US pressure. In the name of national security, the US chip war against China has been gaining momentum since 2022, initiating efforts to curtail China's semiconductor ambitions.

The Role of ASML

ASML stands as the sole manufacturer of the world’s most advanced chipmaking machines, with the Netherlands having restricted exports of ASML's sophisticated machines since 2019. Following US requests, the Dutch government has faced increasing pressure to limit servicing ASML machines already sold to Chinese customers. However, Prime Minister Dick Schoof emphasized the importance of considering ASML’s economic interests before deciding on further actions.

Economic Implications and Retaliation

ASML's CEO, Christophe Fouquet, highlighted that framing these actions as national security is becoming increasingly challenging, suggesting that the undercurrents of the restrictions are economically motivated. Meanwhile, China threatens significant retaliatory measures against ASML, which could impact the company's market share and alter the dynamics of the global semiconductor landscape. Currently, ASML’s largest market is in China, indicating the consequential losses that may arise if tensions continue to escalate.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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