In an attempt to stop China producing advanced chips domestically.
The controls are designed to limit China’s ability to ramp up its own domestic chip production and come after the Biden administration. The fear is that easier access to advanced semiconductors will allow China to shore up its military and artificial intelligence capabilities.
ASML is the most critical company affected by the Netherlands’ restrictions. It’s the only company in the world that produces so-called ultraviolet lithography machines, which are critical to the production of advanced semiconductors. previously noted, which will further limit the ability of Chinese companies to produce advanced chips and set up production lines. ASML CEO Peter Wennink previously told CNBC that China accounted for around 15 percent of the company’s sales in 2022.
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