In the global semiconductor industry, ASML is indisputably at the top of the industry, and its role is not only the pioneer of technological innovation, but also the key driving force for the development of the global semiconductor manufacturing industry. ASML's lithography machine technology, especially the development and production of EUV (extreme ultraviolet) lithography machines, has made it possible to miniaturize semiconductor chips and improve their performance, which in turn has pushed the entire industry forward. However, the issue of export controls surrounding this critical technology, especially the restrictions on the Chinese market, not only illustrates the complex interweaving of global technical cooperation and geopolitical tensions, but also reflects the unique position and challenges facing the Netherlands on the global technology stage.
ASML is closely linked to the Dutch semiconductor industry, which occupies a unique position in the global semiconductor industry thanks to its existence. This is not only because of ASML's leadership in lithography machine technology, but also because of the strategy of the Dutch government and ASML in dealing with international political pressures, especially export controls imposed by the United States. The Dutch government's response and tactical adjustments reflect a complex effort to balance international relations, technical cooperation and economic interests.
In recent years, as global technology competition has intensified, especially in the strategic area of the semiconductor industry, the United States has become increasingly strict in its export controls on high-tech products and technologies, including restrictions on EUV lithography technology for its ally the Netherlands. The purpose of the United States is to restrict the development of China's semiconductor industry in order to maintain its technological superiority and national security. However, this approach not only has an impact on China, but also poses a challenge to the economic and technological development of the Netherlands.
In 2023, in the face of pressure from the United States and demand from the Chinese market, the Dutch government has adopted a more flexible and prudent approach. Dutch Prime Minister Rutte visited China and made it clear that the Netherlands will ensure that export restrictions are not targeted at any particular country and are committed to reducing the impact of export restrictions on Chinese mainland. This statement not only demonstrates the Netherlands' commitment to fair trade, but also reflects the Netherlands' intention to find a balance between maintaining international cooperation and responding to external pressures.
At the same time, ASML's strategy is adapting to this complex international environment. Despite the export restrictions, ASML has provided 32 lithography machines worth RMB 7 billion to the Chinese market in the first two months of 2023, demonstrating its determination to continue serving the Chinese market. This flexibility of ASML and the Dutch government is not only an adaptation to external pressures, but also a strategic consideration to ensure that Dutch technology continues to play a key role in the global semiconductor industry.
Looking ahead, China's rapid development in the semiconductor industry is unstoppable. According to the World Fab Forecast Report, China is expected to operate 18 fab projects by 2024, and its production capacity is expected to increase by 13% year-on-year to 8.6 million wafers per month. By 2027, China's production capacity of mature process wafers is expected to account for 39% of the world's total, ranking first in the world. This momentum not only demonstrates the huge potential of China's semiconductor industry, but also highlights the indispensable role that ASML's lithography machines play in it. It is ASML's advanced lithography technology support that has enabled China to move towards this goal.
In today's globalized world, where technical cooperation and geopolitical tensions are often intertwined, the challenges faced by the Netherlands and ASML epitomize this contradiction. As a small country, the Netherlands plays an important role in the global high-tech industry, thanks to its highly specialized industry and open international cooperation. The example of the Netherlands shows that even in the face of international political pressure, it is possible to maintain and expand its economic and technological influence on the global stage through prudent strategy and insistence on technological innovation.
However, the Dutch government and ASML need to be cautious in the way forward. On the one hand, it needs to continue to maintain technological leadership to ensure the importance of its products and services to the global semiconductor industry, and on the other hand, it needs to find a balance between the pressures of international politics and the needs of the global market. This required the Netherlands not only to have a technical and economic strategy, but also to be proficient in the art of international politics and diplomacy.
For China, ASML's lithography machine and the Netherlands' cooperation strategy provide key support for the development of its semiconductor industry. With the rapid development of China's semiconductor industry, the domestic demand for high-end manufacturing equipment will continue to grow. This is not only a test of the technological innovation capabilities of the Netherlands and ASML, but also a challenge to their international cooperation capabilities. China's goal is not only to introduce and digest external technologies, but more importantly, to promote the development and innovation of local technologies through these cooperations, and ultimately to achieve independent and controllable semiconductor industry.
To sum up, the role and strategy of the Netherlands and ASML in the global semiconductor industry have a profound impact not only on the Netherlands itself, but also on the technological development and economic pattern of China and even the world. In an era of rapid technological change and complex international relations, the Netherlands' strategy and actions remind us that, despite the challenges, small countries can also exert great influence on the global stage through innovation, smart responses, and open cooperation.
257 lithography machines, 750 billion yuan! The Netherlands suddenly announced, foreign media: China has won
In today's globalized economy, trade cooperation between countries is becoming more and more close, especially in the field of high technology. As the core equipment of semiconductor manufacturing, the technical level and supply of lithography machine are directly related to the stability and development of the global semiconductor industry chain. As a leading company in the field of lithography machines, the export of its products has always attracted international attention. Recently, the cooperation between China and the Netherlands in the field of lithography machine trade has attracted widespread attention, which not only reflects the deepening of economic and trade relations between the two countries, but also reflects the rapid rise and market potential of China's semiconductor industry.
Last year, the Netherlands exported 225 lithography machines to China, and in the first two months of this year, another 32 were exported, bringing the total to 257 units. Behind this figure is the stable cooperation between China and the Netherlands in the field of lithography machine trade, and it is also a vivid portrayal of the vigorous development of China's semiconductor industry. In 2023, the total trade volume between China and the Netherlands reached 750 billion yuan, demonstrating the close ties between the two sides in economic and trade cooperation.
The increase in the export volume of lithography machines reflects the growing demand for lithography equipment in China's semiconductor industry. The huge demand in the market makes it impossible for the Dutch top management to ignore the huge potential for cooperation with China. At the end of March, Dutch Prime Minister Rutte made it clear during his visit to China that export controls would not be targeted at any country, a statement that highlighted the fairness of Dutch export control rules and the importance of Sino-Dutch relations.
It is worth noting that China has become ASML's largest market, surpassing South Korea and Taiwan. From January to February this year, China imported 32 lithography machines from the Netherlands, worth up to 7 billion yuan, which further strengthened China's position as ASML's largest market.
The huge potential of China's chip market has attracted many companies, including ASML. Compared to the unstable policies of foreign companies in the Indian market, China offers a good business environment. For example, Xiaomi's assets in India are frozen, while in China, companies that comply with market rules are able to obtain a stable environment for growth. China has set a target of 70% chip self-sufficiency, and an adequate supply of semiconductor equipment is essential to achieve this goal.
Although the U.S. export control policy may have a certain impact on ASML's lithography machine exports, the development of China's self-developed lithography machines is also accelerating. In the long run, China is expected to achieve self-sufficiency in the field of lithography machines, which is not only of great significance to the development of China's semiconductor industry, but also will have a profound impact on the pattern of the global semiconductor industry chain.
In general, the cooperation between China and the Netherlands in the field of lithography machine trade has provided strong support for the development of China's semiconductor industry, and has also promoted the deepening of economic and trade relations between the two countries. In the face of the challenges and opportunities of the global semiconductor industry, China and the Netherlands should continue to strengthen cooperation and jointly promote the healthy development of the global semiconductor industry.