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ASML CEO States that Sanctions on China Won’t Have the Desired Impact

The CEO of ASML has said that restricting the export of cutting-edge chip manufacturing technology to China won’t limit the country’s technological progress, but also adversely impact the US economy. Explaining that export restrictions on the second-largest economy of the world will cost most non-Chinese companies a lot of money and jobs, he quoted numbers estimated by the U.S. Commerce Department.

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. If you close China from access to technology, that will also cost non-Chinese economies a lot of jobs and a lot of income.

Peter Wennink, CEO of ASML

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.

Peter Wennink

If American chipmakers are cut off from the Chinese market completely, it will cost them anywhere between $80 billion to $100 billion in sales and 125,000 jobs in the U.S. While it can be argued that ASML is talking in its own interest, as the trade restrictions forced the company to half the sales of advanced manufacturing equipment to Chinese chipmakers such as SMIC, most US companies have also spoken out against the trade restrictions, calling them detrimental to their own success.

ASML is the only company in the world capable of manufacturing extreme ultraviolet lithography equipment used by TSMC and Samsung to produce the leading-edge process nodes such as 7nm, 5nm, and soon the 3nm GAA chips. The Dutch company hasn’t been able to sell its latest EUV technology to China due to the trade restrictions, with the export license still pending with the Dutch government. Wennink said that the latter is still in talks with the European and US governments on the matter.

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Areej

Computer Engineering dropout (3 years), writer, journalist, and amateur poet. I started my first technology blog, Techquila while in college to address my hardware passion. Although largely successful, it was a classic example of too many people trying out multiple different things but getting nothing done. Left in late 2019 and been working on Hardware Times ever since.
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