The embargo on China’s access to advanced chip manufacturing processes has begun to shake the Netherlands, the leader of the equipment market. Officials say the country’s interests are more important.
Dutch chip equipment manufacturer ASML, which doubled its value in the global chip crisis and reached 300 billion dollars, is getting its share from the global economic crisis. The firm gradually began to criticize the Chinese embargo.
ASML Wants to Supply to China
Dutch ASML is the only manufacturer of casting machines based on EUV technology that enables more efficient chip production. These 200-ton devices contain 100 thousand parts and the price is 150 million dollars. However, China is prohibited from accessing these machines.
Casting machines with slightly less efficient DUV technology are produced by giants such as Canon and Nikon besides ASML. China has access to these devices, but ASML suffers a bit because of competition.
Despite the embargo, China has a dozen companies designing off-the-shelf chips. Again under the embargo, SMIC somehow managed to switch to the 7nm production process. The Chinese chip industry, which is trying to gradually establish its ecosystem, will become a very important income source. As a result, the Dutch government does not want to miss the opportunity.
Government officials are fed up with the endless embargoes. He says that in line with the interests of the country, trade with China should be restored, because in the current situation, income losses harm their interests. At the G-20 meeting, Chinese President Xi had a meeting with the Dutch Prime Minister on this issue. If the US insists that China is carrying out state-sponsored cyber spying activities, interests say something else.