will put more pressure on the Netherlands to force ASML to take an important step

The US government is closely monitoring NVIDIA and ASML’s every move. At the end of the day, these are the two companies that have products that could benefit the most. development of the semiconductor industry and artificial intelligence (AI) in China. With NVIDIA, it’s easy. The US Department of Commerce has the power to grant or deny export licenses, so it’s the body that decides which chips NVIDIA can’t sell in China.

With the Joe Biden administration’s ASML, things are a little more complicated. And to get there, given that it’s a Dutch company, you need to talk to the Dutch government first. That’s exactly what you’re going to do. One more time. And next Monday, there will be a meeting between the head of US export policy, Alan Esteves, and several members of the Dutch government and ASML management. This meeting will seriously determine the future of this company in China.

The services that ASML provides to its Chinese customers are on the line

ASML has never been able to supply its Chinese customers with the most advanced lithography equipment, ultraviolet (EUV) machines. And since the beginning of this year, he cannot sell to them either. deep ultraviolet equipment (UVP). Sanctions prevent this. The latter are less advanced but can still be used to produce advanced integrated circuits. In fact, this is what SMIC and Huawei are doing to produce 7nm and 5nm chips.

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The US government is determined to pressure its Dutch counterpart to further curtail ASML’s China business

At the moment, we do not know the exact content of the meeting, which will take place next Monday in the Netherlands, but Reuters assures that the US government is determined to put pressure on its Dutch counterpart to force ASML to stop providing some tools and services. its Chinese customers. This description is a bit ambiguous, but it clearly indicates that the US administration intends to further reduce ASML’s business in China in order to slow down the development that Chinese semiconductor manufacturers are pursuing at the request of Xi Jinping’s government.

However, that is not all. Alan Esteves also intends to discuss at the meeting in three days the preparation of a list of Chinese integrated circuit manufacturers that ASML will not be able to sell its materials. The Dutch government has confirmed that this meeting with the US representative will take place, but has not disclosed its content.

As expected, the Chinese embassy in Washington issued a statement opposing the pressure the US is putting on other countries to prevent China’s technological development. At the moment ASML does not announce anything, but we can be sure that next week we will learn more in detail not only about the content of the meeting next Monday, but also about what obligations the largest manufacturer of lithographic equipment on the planet will be forced to take.

Picture | ASML

Additional information | Reuters

In Xataka | The US forced China and Europe to fight over ASML. The Dutch company has its own plan

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