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> The company now has to apply for Dutch export licenses for its most advanced DUV and EUV gear, plus US government licenses for some systems destined for China

by diggan 3y ago

> The company now has to apply for Dutch export licenses for its most advanced DUV and EUV gear, plus US government licenses for some systems destined for China. The latter market accounted for over a quarter of its net sales last year. ® ASML is still Dutch, as far as I understand, but I guess they already have offices in the US or something? Why would a US government license be required for a Dutch company to sell to Chinese customers?

atemerev 3y ago
Because it uses some American tech or patents, and there is leverage and pressure point over these.
deleted 3y ago
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wil421 3y ago
Lots of people have said it before. ASML bought Silicon Valley Group after ASML was not granted an EUV license for whatever reason along with a couple of familiar Japanese companies. EUV LLC is owned by the DOE/US government and others in a private/public consortium. In the 2000s ASML bought Silicon Valley Group (SVG) to develop EUV lithography. Now ASML has to abide by the EUV LLC license terms which include US congressional oversight. It’s the US governments tech commercialized by a Dutch multinational company who also has to abide by Dutch export and government restrictions.
- diggan 3y ago
  Thanks a lot for the elaborate explanation that went into specific details of why things are like they are.
  - Kon-Peki 3y ago
    To expand just a little bit more - the core technology for EUV was developed at US national laboratories run by the Department of Energy and paid for by the US taxpayers. The licenses and limitations are the standard used for all technology coming out of the national laboratories; it is only unusual because ASML is not located in the US.
DiogenesKynikos 3y ago
The US makes heavy use of secondary sanctions to coerce foreign companies and governments into restricting business with America's "enemies." The US has leverage to do this, because much of the world's financial transactions run through the US financial system, and much of the world's financial industry has significant exposure to the US. If ASML shrugs off the US government's demands, it will quickly find itself shut off from every major bank, and every supplier who wants to avoid the same fate will cut off its business with ASML. In the specific case of ASML, however, the US also has a Cold-War-era agreement with the Netherlands on transfer of technology to other countries.[0-1] 0. https://en.wikipedia.org/wiki/Wassenaar_Arrangement https://en.wikipedia.org/wiki/Wassenaar_Arrangement 1. https://www.reuters.com/technology/amid-us-pressure-dutch-announce-new-chip-equipment-export-rules-2023-06-30/ https://www.reuters.com/technology/amid-us-pressure-dutch-an...

by diggan 3y ago

atemerev 3y ago

Because it uses some American tech or patents, and there is leverage and pressure point over these.

deleted 3y ago

[deleted]

wil421 3y ago

Lots of people have said it before. ASML bought Silicon Valley Group after ASML was not granted an EUV license for whatever reason along with a couple of familiar Japanese companies. EUV LLC is owned by the DOE/US government and others in a private/public consortium. In the 2000s ASML bought Silicon Valley Group (SVG) to develop EUV lithography. Now ASML has to abide by the EUV LLC license terms which include US congressional oversight. It’s the US governments tech commercialized by a Dutch multinational company who also has to abide by Dutch export and government restrictions.

diggan 3y ago
Thanks a lot for the elaborate explanation that went into specific details of why things are like they are.
- Kon-Peki 3y ago
  To expand just a little bit more - the core technology for EUV was developed at US national laboratories run by the Department of Energy and paid for by the US taxpayers. The licenses and limitations are the standard used for all technology coming out of the national laboratories; it is only unusual because ASML is not located in the US.

DiogenesKynikos 3y ago

The US makes heavy use of secondary sanctions to coerce foreign companies and governments into restricting business with America's "enemies." The US has leverage to do this, because much of the world's financial transactions run through the US financial system, and much of the world's financial industry has significant exposure to the US. If ASML shrugs off the US government's demands, it will quickly find itself shut off from every major bank, and every supplier who wants to avoid the same fate will cut off its business with ASML. In the specific case of ASML, however, the US also has a Cold-War-era agreement with the Netherlands on transfer of technology to other countries.[0-1] 0. https://en.wikipedia.org/wiki/Wassenaar_Arrangement https://en.wikipedia.org/wiki/Wassenaar_Arrangement 1. https://www.reuters.com/technology/amid-us-pressure-dutch-announce-new-chip-equipment-export-rules-2023-06-30/ https://www.reuters.com/technology/amid-us-pressure-dutch-an...