05 July 2022
19:58
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The United States is asking the Netherlands to limit the export of chip producer ASML to China. Washington wants to thwart Beijing’s plans to become the world leader in semiconductor manufacturing.
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The Dutch ASML is a leading manufacturer of equipment for the production of chips. It is the world’s largest producer of lithography systems – machines that perform a crucial step in the creation process of those semiconductors. That technology is essential for making much of the world’s chips. A strategic battle is underway between the US, Europe and China around those essential links of our daily lives.
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According to the Bloomberg news agency, US officials are said to be lobbying their Dutch counterparts to ban ASML from selling some of its older deep ultraviolet lithography (DUV) systems. These machines are used to make chips that are used for the production of cars, telephones, computers and robots.
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The restriction proposed by Washington means extending the moratorium on sales of the most advanced systems to China. If the Netherlands agrees, it will deal a heavy blow to Chinese chip manufacturers such as Semiconductor Manufacturing International or Hua Hong Semiconductor. That would undermine the Asian country’s ambitions to make itself more self-sufficient in the production of the crucial electronic components.
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ASML . share
lost 4.55 percent on the Amsterdam stock exchange on Tuesday. It is trading at 409 euros.
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Visit
The American question came on the agenda during the visit of the American Deputy Secretary of Commerce Don Graves to the Netherlands and Belgium at the end of May, beginning of June. During that trip, Graves also visited ASML’s head office in Veldhoven and met CEO Peter Wennink. He stated earlier this year that he is against a ban on the sale of DUV lithography equipment to Chinese customers, because it is already a mature technology.
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The Dutch government has not yet approved additional restrictions on ASML’s exports to Chinese chipmakers, which could harm the country’s trade relations with China.
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ASML is already unable to ship its most advanced extreme ultraviolet lithography (EUV) systems – which cost around EUR 160 million each – to China because it cannot obtain an export license from the Dutch government.
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The US Department of Commerce and the Dutch Department of State declined to comment.
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