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ASML CEO Says Trying to Control Chip Sales to China Won’t Work

tonyget

Member

Export controls against China will not only fail to halt its technological progress but also hurt the U.S. economy, ASML Holding NV Chief Executive Officer Peter Wennink said, after trade tensions between Washington and Beijing led to restrictions on the sale of the Dutch company’s advanced chip equipment to Chinese firms.

“I believe that export controls are not the right way to manage your economic risks if you have determined that there is an economic risk,” Wennink said during an online industry event on Wednesday, arguing that if “you close China from access to technology, that will also cost non-Chinese economies a lot of jobs and a lot of income.”

While it will take a long time for China to build its own semiconductor equipment and technology due to a lack of access to foreign technology, eventually non-Chinese companies will be shut out of one of the largest chip markets, Wennink said.

If American business with China on semiconductors is cut off completely, it will probably cost anywhere between $80 billion to $100 billion in sales and 125,000 jobs in the U.S., Wennink added, citing U.S. Commerce Department estimates.

ASML, which has a de facto monopoly on advanced extreme ultraviolet lithography equipment needed to make cutting-edge chips, is a crucial supplier to Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., but it has plans to drive deeper into China. Beijing wants to build a world-class home-grown chip industry to wean itself off foreign imports -- an effort that would need ASML’s one-of-a-kind EUV machines. Yet the company faced difficulty getting the Dutch government to renew a license to export the systems to China amid ongoing trade tensions.

Wennink said in January that ASML hasn’t shipped its latest EUV machines to China because the request for an export license is still with the Dutch government, adding that there have been ongoing talks between Dutch, the European and the U.S. governments.
 

hist78

Active member

Export controls against China will not only fail to halt its technological progress but also hurt the U.S. economy, ASML Holding NV Chief Executive Officer Peter Wennink said, after trade tensions between Washington and Beijing led to restrictions on the sale of the Dutch company’s advanced chip equipment to Chinese firms.

“I believe that export controls are not the right way to manage your economic risks if you have determined that there is an economic risk,” Wennink said during an online industry event on Wednesday, arguing that if “you close China from access to technology, that will also cost non-Chinese economies a lot of jobs and a lot of income.”

While it will take a long time for China to build its own semiconductor equipment and technology due to a lack of access to foreign technology, eventually non-Chinese companies will be shut out of one of the largest chip markets, Wennink said.

If American business with China on semiconductors is cut off completely, it will probably cost anywhere between $80 billion to $100 billion in sales and 125,000 jobs in the U.S., Wennink added, citing U.S. Commerce Department estimates.

ASML, which has a de facto monopoly on advanced extreme ultraviolet lithography equipment needed to make cutting-edge chips, is a crucial supplier to Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., but it has plans to drive deeper into China. Beijing wants to build a world-class home-grown chip industry to wean itself off foreign imports -- an effort that would need ASML’s one-of-a-kind EUV machines. Yet the company faced difficulty getting the Dutch government to renew a license to export the systems to China amid ongoing trade tensions.

Wennink said in January that ASML hasn’t shipped its latest EUV machines to China because the request for an export license is still with the Dutch government, adding that there have been ongoing talks between Dutch, the European and the U.S. governments.
"If American business with China on semiconductors is cut off completely, it will probably cost anywhere between $80 billion to $100 billion in sales and 125,000 jobs in the U.S., Wennink added, citing U.S. Commerce Department estimates."

Wondering where did Mr. Wennink get this information from? I did a search and Mr. Wennink is the only person mentioned these numbers on the Internet at this moment.
 
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Arthur Hanson

Well-known member
For all sides, I hope they come together, but military exercises that clearly involve aggression will not help and makes one's true intentions at best questionable. Cooperation and collaboration would create a technological explosion that would benefit everyone. I hope wiser and cooler heads prevail.
 

Daniel Nenni

Admin
Staff member
As I have said before, embargoing semiconductors is like embargoing oil, it should be viewed as an act of war so politicians should tread lightly.

And what exactly will China do with EUV? Take it apart and and try to reverse engineer it? SMIC is so far away from EUV they can't even see it and the China memory companies can't even spell it.
 

hist78

Active member
As I have said before, embargoing semiconductors is like embargoing oil, it should be viewed as an act of war so politicians should tread lightly.

And what exactly will China do with EUV? Take it apart and and try to reverse engineer it? SMIC is so far away from EUV they can't even see it and the China memory companies can't even spell it.

Are we not in a war?
 

tooLongInEDA

New member
Economics is the backbone of national security

“For war we need three things-money, money and more money” —— Napoleon Bonaparte
Which is one of the main reasons why Napoleon lost ... not getting a decent price for 25% of the US probably didn't help ...
 

hist78

Active member
"The Capitalists will sell us the rope with which we will hang them" - Vladimir Lenin

After more than 100 years it didn't happen!

Actually the Communism keeps using cheap ropes made by the Communist Party to choke their own citizens to death, either on the brain or on the physical body.
 
It won't. Siemens is a German company and Germany is a NATO member country. There isn't much chance that US and Germany will have an argument on things like this.
In the energy area US and Germany are having an argument.
Germany is building the Nordstream 2 natural gas pipeline for
importing Russian natural gas that the US (at least under the
last administration) opposes. German policy that I think goes
back to Catherine the Great is to engage with Russia but at
the same time sanction political misdeeds (Novotny
sanctions say) attempting to bring Russia into the modern
democratic world.
 

hkwint

Member
Indeed; last time I checked Stuxnet targeted S7 in Natanz.
So obviously the US doesn't halt anything Siemens sells.
 
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