2 October 2024

ASML’s Dilemma: Balancing AI Chip Innovation In Times Of USA-China Tech War – Analysis

Girish Linganna

In the summer, the United States pushed its allies, including the Netherlands, to tighten export rules on semiconductor equipment manufactured by Advanced Semiconductor Materials Lithography (ASML) Holding NV—a joint venture between Philips and ASM International and a Dutch multinational corporation founded in 1984—being sent to China. The US government took this step to limit China’s access to advanced technology that could strengthen its military power.

In response, the Dutch government recently regained control over the company’s exports, while still following US policies. This led to stopping ASML’s shipments of advanced chip-making machines to China. The decision reflects the ongoing geopolitical tensions over technology exports and the balance between national security and economic interests.
ASML: Pioneering Advanced Chip-Making Tech

ASML focuses on developing and making photolithography machines, which are essential for producing computer chips. ASML’s unique EUV lithography technology works on a very small scale, using light with a wavelength of just 13.5 nanometres (nm) to print microchips. A 13.5-nm chip is mainly used for making advanced processors for such devices as smartphones and computers. It enables smaller, faster and more efficient chips used in AI, high-performance computing and mobile devices.

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