The US requested that ASML Holding NV (ASML), a Dutch-based global leader in semiconductor manufacturing, stop maintaining some equipment it sold to Chinese customers.
ASML to Align With US Requests Regarding China Exports
Although the Netherlands hesitates to roll out a blanket restriction, indications are that it will align itself with US demands by slowing down approvals for Chinese servicing requests and by quickening denials. Such actions will impact China’s mission to expand its local semiconductor market, as ASML products need regular servicing.
ASML is the largest company in the Netherlands. Although the government’s decision meets political demands, ASML may relocate its business to sidestep these export restrictions. The country’s prime minister, Mark Rutte, recently met with China’s president, Xi Jinping, and discussed the ASML issue.
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The Netherlands support Ukraine in its war against Russia, and Rutte is pegged to become the next NATO secretary. This conflicts with China’s support for the Russian invasion. Rutte indicated that should Russia win this war, it would pose a threat to the rest of Europe.
Based on a Reuters report, he did not respond about the licensing of ASML’s Chinese customers. Xi, who maintains China’s neutrality about the Russia-Ukraine conflict despite the strategic alliance, warned Rutte against “decoupling and breaking links” with China.
Bart Groothuis, LinkedIn
ASML did not offer comments and previously indicated it complies with export rules. According to Reuters, European Parliament legislator Bart Groothuis said export policies must align with a country’s prominent allies. He commented:
It is much better for us to do that, regulate ASML, together with the US, or in the future it may be Europe, and I would say that is the best way forward.
