Lithography machines are essential for breakthroughs in chip technology, and many aspects of chip manufacturing technology cannot be completed without lithography machines. So far, the world's lithography machine companies are the strongest in the Netherlands.
Recently, however, Asml wanted to move away from the Netherlands. On March 6, according to a Reuters report, lithography giant ASML had planned to move away from the Netherlands. After learning of ASML's idea, the Dutch government was very anxious and soon set up a special working group. even did not hesitate to spend 20 billion yuan to do everything possible to retain ASML.
According to foreign media reports, the Dutch Minister of Economic Affairs, Micky Adriansend, emphasized that ASML is one of the most important companies in the Netherlands and a global participant.
ASML currently employs around 42,000 people worldwide, more than half of whom are based in the Netherlands. However, ASML employees working in the Netherlands are not exclusively Dutch, and a large proportion are foreigners.
Previously, the Netherlands had a very good business environment, with a free economy and an overall high level of education. However, recent surveys show that the business environment in the Netherlands is deteriorating. Around 44% of the companies surveyed believe that the Netherlands is not so attractive in terms of doing business. 20% of those surveyed want to leave the Netherlands.
ASML has already taken action before other companies, such as Unilever moving its headquarters from the Netherlands to the UK in 2020. The following year, Shell also moved its headquarters from the Netherlands to London, England, where they had been for almost 100 years.
It is probably because of the continuous relocation of companies from the Netherlands that the Dutch government has become anxious. After all, lithography machines are now crucial to the development of chip technology, and almost all semiconductor giants around the world are inseparable from lithography machines produced by ASML, such as Samsung Electronics, Intel, etc.
At present, 80% of the lithography machine market is monopolized by ASML. This brings huge tax revenues to the Dutch government every year, coupled with the fact that there is now a strong global push for artificial intelligence and increasing competition in 6G communication technology. In the future, the demand for lithography machines will increase almost visibly, so ASML's economic benefits in the future are likely to be better and better, and the Dutch government naturally does not want to give up this cash cow.
So why did ASML move out of the Netherlands? Because of the recent Dutch plans to restrict the implementation of some immigration restrictions. But ASML disagrees with this. ASML CEO Peter Wennink has stressed that ASML is now very dependent on foreign labor, and now that the Dutch government restricts immigration, ASML may not be able to recruit enough staff in the Netherlands.
In terms of retaining ASML, the Dutch government has indeed shown sincerity and intends to spend 20 billion yuan to improve the infrastructure construction in Eindhoven, where ASML is located. This includes education, transportation, power grid, and housing in the area. In addition, the Dutch government is also willing to give some tax reduction policies for ASML. However, we have not elaborated on what the measures will be.
It is no wonder that the Dutch government has worked so hard, in addition to bringing in huge tax revenues, ASML itself is too important in the field of lithography machines. For example, the high-NA EUV extreme ultraviolet lithography machine produced by ASML has become a treasure that many semiconductor giants such as Intel are vying to order.
Even if some people speculate that the price of a lithography machine may reach 3 billion yuan, Intel does not hesitate to spend a lot of money on the order. When the main components of the high-NA EUV extreme ultraviolet lithography machine arrived at Intel, Intel also deliberately released the good news on its Twitter social account. The joy is palpable.
As the saying goes, you get what you pay for, and the reason why Intel is willing to spend such a high price is naturally because it can bring huge economic benefits. If ASML had not curtailed its exports to China under pressure, the mainland might have ordered these lithography machines.
After all, mainland China is ASML's second largest market, and in the 2023 financial report, China contributed 29% of ASML's revenue. But unfortunately, at the beginning of the new year of 2024, the ASML lithography machine dialogue limit has been further reduced.
So far, the mainland is not completely unable to produce lithography machines, but there is no breakthrough in the technology of advanced lithography machines for the time being. ASML CEO once said that China should not be restricted, otherwise it will only force China to produce lithography machines. It is not unreasonable to say that in the past difficulties, China has always been able to burst out with unlimited potential. In the field of backward technology, catch up and surpass.
It is hoped that domestic scientific research and technology companies can also break through the problem of lithography machine as soon as possible, so that we can get rid of the limitations in this regard. Help the domestic semiconductor industry to achieve rapid leap forward.