{"id":14745,"date":"2024-04-08T15:42:20","date_gmt":"2024-04-08T15:42:20","guid":{"rendered":"http:\/\/TheNextWeb=1405517"},"modified":"2024-04-08T15:42:20","modified_gmt":"2024-04-08T15:42:20","slug":"us-china-chip-war-further-entangles-dutch-semiconductor-giant-asml","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=14745","title":{"rendered":"US-China chip war further entangles Dutch semiconductor giant ASML"},"content":{"rendered":"\n
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US pressure to block ASML from servicing the chip-making machines it has sold to China is increasing the Netherlands\u2019 entanglement into an escalating geopolitical race<\/a> for tech<\/a> supremacy.<\/p>\n

Implementing a clear technological and economic decoupling strategy from China, the Biden Administration has introduced a series of thorough export rules aiming to restrict Beijing from obtaining key chip technology.<\/p>\n

But as the world\u2019s only manufacturer of equipment for advanced chips, ASLM has also been at the epicenter of US efforts to constrain China\u2019s semiconductor industry.<\/p>\n

Existing restrictions for ASML<\/h2>\n

Restrictions on the Veldhoven-based company from selling its most sophisticated machines to China have been in place since 2019. In September 2023, following months of lobbying from the US, the Dutch government also introduced stricter export controls<\/a>, citing \u201cnational security\u201d concerns.<\/p>\n

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One month later, the Netherlands<\/a> aligned with Washington\u2019s new export measures, which included ASML\u2019s TWinscan NXT1930Di machine \u2014 if it contained any American-made parts.<\/p>\n

Meanwhile, in January this year, the Dutch government curbed shipments<\/a> of two more chip-making machines.<\/p>\n

Netherlands in difficult position<\/h2>\n

Alan Estevez, the US export policy chief, has publicly stated that Washington is urging its allies not only to block shipments of high-end chip-making tools, but also reconsider existing servicing contracts.<\/p>\n

For its part, the Netherlands is required to navigate a complex diplomatic and business landscape.<\/p>\n

On the one hand, the Dutch government needs to protect the interests of its NATO partners, especially regarding Russia. China\u2019s alliance with Vladimir Putin plays a crucial role.<\/p>\n

\u201cIt is incredibly important that China understand any victory for Russia [against Ukraine] would pose an immediate threat [to the Netherlands and Europe]\u201d, Mark Rutte, currently acting as interim president, said<\/a> during a meeting with Chinese President Xi Jinping last week.<\/p>\n

Rutte further called on Beijing to establish proactive measures to ensure that important technology \u2014 such as ASML\u2019s machines \u2014 doesn\u2019t fall into Russian hands.<\/p>\n

On the other hand, the Netherlands needs to align with the EU\u2019s de-risking<\/a> (rather than decoupling) strategy. It also needs to evaluate the potential economic impact both for ASML and the country itself \u2014 at a time when the government is striving to keep its crown jewel in its tech ecosystem<\/a>. from moving abroad.<\/p>\n

In January ASML said that the Dutch and US measures wouldn\u2019t have a \u201cmaterial impact\u201d on its financial outlook for 2023. However, potential new restrictions would eventually hurt the company\u2019s profits. The maintenance of machines accounts for approximately 20% of the manufacturer\u2019s total revenue, according to estimates<\/a>.<\/p>\n

At the same time, the chip-machine maker is one of the country\u2019s biggest employers and most profitable businesses, reaching a \u20ac27.6bn<\/a> turnover last year.<\/p>\n

The Dutch government, Estevez, and ASML are meeting today in what\u2019s expected to be a high-stakes negotiation on servicing contracts with China. While it\u2019s uncertain how the Netherlands will decide to proceed, its response will further shift the pieces on the geopolitical chipboard.<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

US pressure to block ASML from servicing the chip-making machines it has sold to China is increasing the Netherlands\u2019 entanglement into an escalating geopolitical race for tech supremacy. Implementing a clear technological and…<\/p>\n","protected":false},"author":1,"featured_media":14746,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/14745"}],"collection":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14745"}],"version-history":[{"count":0,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/posts\/14745\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=\/wp\/v2\/media\/14746"}],"wp:attachment":[{"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.londonchiropracter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}