This alliance could hinder Beijing's plans to build domestic chip capabilities.
Netherlands Restricts ASML
The Netherlands plans to expand restrictions on ASML Holding NV, preventing the company from selling certain deep ultraviolet lithography machines to China. These machines are crucial for making advanced chips; with them, production lines may be possible.
Impact on Chipmaking Equipment Companies
The three countries are home to important companies in chip equipment production, including ASML, Japan's Tokyo Electron, and the US's Applied Materials. US equipment makers have raised concerns that the previous unilateral action by the US has allowed foreign competitors to operate in one of the largest markets for their products, hindering efforts to restrict China's military advancements.
China's Response
China has taken action against these efforts by filing a dispute with the World Trade Organization to overturn US-imposed export controls. ASML's CEO has warned that these measures may push China to develop its advanced chipmaking technology.
