Christophe Fouquet, CEO of Dutch chip equipment manufacturer ASML, stated on Wednesday that the U.S.-led effort to restrict exports to China, initially justified on national security grounds, has increasingly become “economically motivated.”
Speaking at a Citi conference in New York, Fouquet anticipated growing resistance to these restrictions. He also noted that advancements in Chinese chip technology are being hindered by the existing restrictions.
“It’s becoming more difficult to argue that this is solely about national security,” Fouquet remarked.
He predicted that while pressure for further restrictions might increase, there will also be substantial push-back. Fouquet expressed a desire for a balanced approach, emphasizing the need for clarity and stability in business operations.
The prime minister of the Netherlands announced on Friday that, in the wake of repeated rounds of Dutch and American restrictions in 2022 and 2023, he would carefully consider the economic interests of ASML, the largest corporation in the nation and the largest technology firm in Europe.
The United States government has been pressuring ASML to cease maintaining certain equipment it supplied to Chinese clients before 2024, as those items are now subject to limitations, ever since April.
Subsequently, Fouquet restated ASML’s financial projections for 2024 and 2025, pointing out that although the computer chip markets have recovered unevenly, demand for AI chips has been a bright light.
The company that makes chips for Nvidia (NVDA.O), Apple (AAPL.O), and TSMC (2330. TW), a Taiwan-based company, is ASML’s largest client.
