The Netherlands — home to critical chip firm ASML — is embroiled in political tensions between the U.S. and China over semiconductor technology.
www.cnbc.com
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Anna Rosenberg, head of geopolitics at the Amundi Institute, said that the latest announcement from the Netherlands is “a big deal” for President Joe Biden.
“The U.S. has been trying to get the EU to side with its policies towards China for a while, and it has significantly more leverage with the EU now than prior to the [Ukraine] war, simply because the EU is now pretty much entirely dependent on its security on the U.S.,” she added."
True but grossly oversimplified connection of dots. This mostly cements the ongoing situation, the export of their most advanced lithography technology to China was already restricted since 2019 for the same reason. A magat could argue some credit goes to Trump but then it’s been demanded by the left here too for sometime already. ASML themself have major concerns about China copying their product and sells them only older generations. Just a month ago another chinese employee was caught relaying info to the ccp, it has (according to them) cost them hundreds of millions already.
Practically, this ‘news’ may not change a whole lot or affect ASML's revenue. It does send a message in several directions, the US, China, Japan (Nikon in same boat), but also the rest of the EU. Some EU members (those with a softer stance on China) are worried this might reflect on them and would rather appease China. A milk boycott would be great atm but the official response from the Chinese foreign ministry has been mild and no repercussions are expected. Never a straight answer but this part seemed almost desperate:
“NRC [dutchs newspaper]: I have a question also concerning ASML. There is also concern within the Netherlands itself that we will lose our competitive edge in semiconductor machine production if we sell these ASML machines, advanced chip production machines, to China. Do you understand this fear in Holland?
Mao Ning [china’s foreign minister]: If the Netherlands loses from normal trade with China, then it might need to think about why that is the case. Is it because a certain country [USA] uses trade issues as a tool and a weapon and has imposed a list of demands on the Netherlands?”
Yeah maybe. A list even. And maybe it turns out there is a price to pay for decades of knock-offs and IP theft after all.