"Only Economic Motives Remain Instead of Security," Criticism Raised
ASML, the 'super Eul' in the semiconductor industry, voiced criticism against the US-led export restrictions on China. It pointed out that the original purpose of national security is gradually being lost, leaving only economic motives.
According to major foreign media on the 4th (local time), Christophe Fouquet, CEO of ASML, said in a speech at a conference held in New York that "It is becoming increasingly difficult to say that (the US export restrictions on China) are related to national security," and argued that "As time goes by, the economically motivated factor is becoming greater than security."
He continued, "(The US's) export control pressure on allies will increase, but so will the backlash," emphasizing, "Now, I hope we reach a certain equilibrium. What we want as a company is some clarity and stability."
The US has strengthened regulations for years to block China's growth in the artificial intelligence (AI) semiconductor industry from a national security perspective. In particular, it has pressured allies such as the Netherlands and Japan, which are semiconductor equipment powerhouses, to join in controlling exports to China. Among them, the extreme ultraviolet lithography (EUV) equipment owned by the Netherlands' ASML is considered essential core equipment for producing cutting-edge semiconductors with processes below 7 nanometers. This is why ASML is called the 'super Eul' in the industry.
The US pressured ASML to stop selling advanced semiconductor equipment to China as well as maintenance and repair services for previously sold equipment, but it has not achieved significant results. ASML's exports to China in the second quarter amounted to 2.3 billion euros (about 3.47 trillion KRW), a 21% increase compared to the previous quarter, and China's Huawei shocked the market last year by launching the smartphone 'Mate Pro 60' equipped with a 7nm (nanometer, one billionth of a meter) process processor.
In response, Bloomberg reported that the Joe Biden administration is considering imposing Foreign Direct Product Rules (FDPR) on semiconductor equipment companies such as ASML and Tokyo Electron. This measure requires US government approval for exports if US software, equipment, or technology is used even slightly in products made in other countries. Following this news, ASML experienced its largest stock price drop in about two years despite posting better-than-expected second-quarter results in July.
However, it is uncertain whether ASML will comply with the US's strong trade restrictions. Earlier, Dutch Prime Minister Mark Rutte said at a press conference last month regarding the strengthening of export restrictions on China by ASML, "We are carefully reviewing ASML's economic interests," and stated, "ASML is a very important company for the Netherlands, so it must not suffer damage under any circumstances."
Meanwhile, on the same day, ASML's stock price on Euronext closed at 736.40 euros, down 5.93% from the previous session.
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