“If the Netherlands follows this strategy, it will exacerbate the widening rift in China-US and China-Netherlands relations “ said the Global Times earlier this week, adding “if ASML loses the Chinese market, it will suffer significant economic losses. This loss could potentially lead to a decrease in ASML’s global market share and a shift in the balance of power in the semiconductor industry. For those companies that follow the US in containing China, it will be challenging to return once they lose the Chinese market.”
According to ASML’s most recent earnings report, 49% of its last quarter revenues came from China.
The Dutch government is concerned about the threat to ASML. Last week Dutch Prime Minister Dick Schoof said the government was “watching out very specifically for the economic interests of ASML.”
The Global Times backed up its threats of market exclusion with suggestions that it “will double its efforts to fully resolve the technical issues of high-end chip production.”
It took the best part of 25 years to develop an EUV machine from concept to having a machine that made parts to sell to customers. It’s not widely known how far China is along that path, but its threats of political action suggest that it doesn’t expect to be able to match ASML’s capabilities anytime soon
