Today we will be talking about the U.S. President Joe Biden and Dutch Prime Minister Mark Rutte held wide-ranging talks on Tuesday January 17 that included a discussion on Dutch concerns about new U.S. restrictions on exporting chip-making technology to China. We are talking here about a company called ASML
What is ASML? ASML is one of the world’s leading manufacturers of chip-making equipment. It’s a common misconception that ASML makes chips, also called microchips or integrated circuits (ICs), but ASML actually designs and manufactures the lithography machines that are an essential component in chip manufacturing. Currently ASML holds 67 percent of the worldwide sales of lithography machines. Why can’t ASML sell to China their newest technology? Currently, ASML can not ship its advanced extreme ultraviolet lithography systems (EUV) to China because it cannot obtain an export license from the Dutch government. Basically Dutch government is not 100% convinced that the newest ASML technology should be in the possession of China. Current geopolitical situation additionally exacerbate tension between China and western democratic countries. China silently is on the side of Russia who invaded Ukraine and is relentlessly trying to make any territorial gains in Ukraine to show domestically that Putin is strong and effective leader.