[Source/Observer Network Qi Qian] ASML, forced to become a tool for the US to suppress China's chips, has made this globally leading chip manufacturing company very tired. According to a report by The New York Times on June 5, ASML CEO Christoph Fuhai warned in an exclusive interview with the newspaper that America's chip export restrictions not only weaken ASML's dominant position in the semiconductor industry but also have the opposite effect, further promoting China's self-reliance and strength.

The report stated that this semiconductor giant headquartered in the Netherlands found itself drawn into the Sino-US trade war, becoming a pawn in America's geopolitical games.

In recent years, the US government has continuously tightened its restrictions on China's chip exports, significantly affecting ASML's trade with China. Just last month, former US President Trump announced a 50% tariff on European goods sold to the US, which would increase ASML's costs. Two days later, he suspended the tariffs.

Fuhai, who just took over as CEO last year, expressed deep concern and frankly said in an interview: "A large part of things are still beyond our control."

The New York Times reported that Fuhai initially remained low-key about the geopolitical challenges facing the company. Now, he is more openly expressing his concerns, believing that US government policies may disrupt supply chains built over decades, slow down the development of artificial intelligence and other technologies, and prompt China to develop its own semiconductor industry, ultimately possibly weakening ASML's dominant position and harming Western interests.

Fuhai pointed out that China has already begun developing some independently researched lithography equipment. Although China still has a long way to go in catching up with ASML's technology, he said that no matter how many obstacles are set, "the person you try to stop will double their efforts to succeed."

ASML CEO Christoph Fuhai Video screenshot

As chips are increasingly integrated into various fields of daily life, including smartphones, cars, toys, and refrigerators, ASML's business is also thriving. Recently, companies such as OpenAI, Microsoft, and Google have established large data centers worldwide, using a large number of AI chips produced by ASML equipment. Data shows that the company's revenue reached a record $32.3 billion last year.

However, geopolitical shadows, US tariffs, and export controls still loom over ASML. The report mentioned that some people question whether the demand for chips brought by the artificial intelligence boom is sustainable and whether ASML's latest machines are worth the cost. In the past year, the company's stock price has fallen by about 25%.

Fuhai said that Trump's tariff policy brought additional challenges to ASML, increasing uncertainty and weakening efforts to build domestic chip factories in the US. He said: "If you want to produce chips domestically, you must ensure reasonable costs. If there are tariffs, costs will naturally rise."

Currently, Fuhai is working to consolidate ASML's industry-leading position. Besides publicly criticizing the consequences of Trump's trade policies, he also expanded the company's lobbying team in Washington, Brussels, and The Hague. He said that the EU and the Netherlands can take more measures to protect ASML and the semiconductor industry from the impact of Sino-US trade friction.

"There is no doubt that we always hope someone will stand up for us," he said. "I think for Europe and for the Netherlands, ASML is a big topic, and it's a real opportunity."

While seeking help from others, Fuhai is also seeking to strengthen himself. He introduced that he and his team maintain regular contact with government officials in Washington, Brussels, and The Hague. The message he conveys to them is that the semiconductor supply chain is globally integrated, and trying to influence one country's policies may slow down technological development and increase costs for all countries.

He said that US export bans may backfire and warned against defending protectionist policies under the guise of "national security." He pointed out that instead of focusing solely on containing "economic competitors" like China, attention should be placed on innovation.

ASML booth at last year's CIIE ASML official website

The report mentioned that global semiconductor industry executives are opposing US trade policies that restrict sales of their products and services, and Fuhai is among them.

Last month, NVIDIA CEO Jensen Huang publicly stated that US restrictions on semiconductor exports to China have already "failed," causing more harm to American companies than to China. In May, the Trump administration added NVIDIA's "China-specific" H20 chip to the control list.

Huang described in an interview that the cost of the US government's restrictions on Chinese chips is high, resulting in the company losing $1.5 billion in sales. He frankly stated that the idea of stopping the spread of artificial intelligence technology to prevent other countries from obtaining US technology is fundamentally wrong. If US companies do not compete in the Chinese market, then Chinese technology will spread throughout the world.

On May 29, Huang reiterated during the company's earnings call that the export controls caused significant losses for NVIDIA, but they could not hinder the development of China's artificial intelligence. Instead, it would stimulate China's innovation, enhance China's strength overseas, and weaken the US position.

"Jensen Huang said that US chip restrictions failed, and he is not alone in this view."

Previously, CNBC published an article pointing out that many analysts and insiders also stated that the US chip restrictions implemented to curb China's artificial intelligence development were actually "more harmful than beneficial," causing greater harm to US companies and accelerating the development of competitors like China, narrowing the gap between China and the US in terms of artificial intelligence capabilities.

Dutch Foreign Minister Federcamp mentioned during his recent visit to China that China hopes to ease ASML's export controls. In response, Foreign Ministry spokesperson Mao Ning pointed out that China has repeatedly expressed its position. The semiconductor industry is highly globalized, and the formation of supply chains is the result of market and corporate choices. For a period of time, individual countries have generalized the concept of national security, imposed export controls and extraterritorial jurisdiction, seriously threatening the stability of global supply chains. China and the Netherlands have strong complementarity in the semiconductor field, and cooperation benefits both sides. Both sides will maintain close communication through existing channels. China is willing to work with the international community, including the Netherlands, to uphold openness and cooperation, and jointly maintain the stability of the global semiconductor supply chain.

This article is an exclusive piece by Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7512668546095153700/

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