The technology behind chip manufacturing that fuels smartphones to computers is undergoing a new form of battle for control over chip manufacturing, and leading this charge is ASML, alongside semiconductor companies in Netherlands.
The Dutch-based ASML Holding has become the world’s top producer of machinery producing leading semiconductors. With Intel and Taiwan Semiconductor Manufacturing Company (TSML) turning to ASML technology, China is now pressured to develop its own chips to bypass the monopoly of semiconductor companies in Netherlands.
A Semiconductor Battle
The production of semiconductors demands more than just chip designs, it demands advanced machines to draw microscopic patterns onto silicon wafers.
ASML has established itself as the sole supplier of the most advanced chip-making equipment, particularly its extreme ultraviolet (EUV) lithography machines. Such machines are one of the key pillars for producing the newest semiconductors. Instead, they depend on ASML, which has monopolized this space in the Netherlands semiconductor industry.
Pursued by Nikon and Canon earlier, Extreme Ultraviolet (EUV) technology fell into the reach of ASML after these competitors fell out of the race due to the high cost and complexity of making such equipment. ASML’s commitment to pursuing EUV lithography has made it the only master of semiconductor manufacturing technology, securing the position of Netherlands semiconductor companies as key players in the global chip-making sector.
Will China Lag Behind?
ASML’s superior technology is determined to be an obstacle for China, which has been mostly closed out of the access to EUV machines. It is also part of the broader effort of the US and its allies, including the Netherlands, to deprive China from access to necessary technology to secure national security and prevent potential uses of high-end chips for the military.
The semiconductor industry in Netherlands is at the core of these restraints, particularly when Netherlands planned to expand export restrictions on China semiconductor equipment.
ASML plans to limit sales of older equipment to China, further hindering its semiconductor ambitions. Though ASML never sold its latest machines to China, the new restriction could significantly block China’s ability to produce high-end chips, with Netherlands semiconductor companies playing a fundamental role in how things unfold.
Final Thoughts
Despite obstacles, China is speeding the progress to develop its own semiconductor technology, and it has already taken notable steps with chipsets like BR104 graphics and Moore Threads MTT S80 GPU, to mention that it would reduce reliance on foreign players.
Geopolitical conflict is the struggle of the world for technological supremacy. By limiting China’s access to key machinery, the US and its European allies seek to slow down China’s military and technological advancements. The Netherlands semiconductor and China restrictions are the focal point of this struggle of technology.
China’s effort towards self-dependency is ongoing. In time, the focus on building local chip production capacity could redefine the power balance within the semiconductor industry. Will the geopolitical constraints delay China’s progress, or will its innovation bring a new era of technological independence from semiconductor companies in Netherlands?
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