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This is a big deal. ASML is one of the most bleeding edge companies that almost no one has ever heard of. Their equipment should be kept out of Red China as much as possible.
ASML (Netherlands) and TSMC (Taiwan) may be the two most important companies in the global electronics supply chain.
China is certainly looking to bolster their own competition in this space. But that hasn't happened yet. I'm sure the CCP is very concerned about this regulation. If they're not, they should be.
With the kind of long-term thinking that China tends to do, I have little doubt that they know they need to develop their own tech. By limiting their access now, that would probably keep Chinaa decade or maybe even two behind the bleeding edge tech that ASML or TSMC are producing. And I tell you right now that if a war ever did break out between China and Taiwan, gaining access to TSMC would be one of the mainland China's prime targets to take over.
gaining access to TSMC would be one of the mainland China’s prime targets to take over.
They will never get them in an operational state. It is not just the fabs, which I doubt will survive the invasion but the hundreds of engineers needed to run them.
China does so little long term planning. It’s beholden to the short term emotional tantrums/wolf warrior diplomacy of its leadership.
I can't agree with that at all.
Their planning when it comes to their car industry is a perfect example of them thinking long term. Right now they are the leaders in EVs. Their domestic car industry is shockingly advanced in terms of quality and design and tech. But that wasn't the case some 25 years ago when they were a good 50+ years behind Western countries.
They implemented a plan which forced foreign carmakers to partner with Chinese companies if they wanted to sell within the country. They were using their massive scale to push these partnerships, and the short term thinking kf most Western companies made them fall for it. So with those partnerships technology and know-how was shared with Chinese companies. This is the kind of know-how that companies usually keep as secret as possible because of how important it is - IP is probably one of the most important things to modern manufacturing companies. These Western companies were essentially training their long term replacements all so they could sell a few thousand more cars per year in the short term.
And in many ways that is exactly what is happening right now - there is a big push in China recentky to support domestic brands. Sales for foreign makes is dropping and the Chinese are buying BYDs and Geelys. These Chinese brands have gotten so good, in fact, that they are now exporting their EVs to Europe and elsewhere.
Why?
Because they make the equipment that make the chips that EVERYTHING in our modern world runs on. I'm only slightly exaggerating that statement. If you are tech savvy and understand the microscopic scale that chips have moved to, well ASML and only like one other company (TSMC) are making the equipment to be able to allow these ever-smaller processes even possible.
Yeah, but why is it bad to have more manufacturers of chips?
Are we going to play the "nothing wrong with China" angle here?
No, I'm playing the "I'd love to get cheap hardware thanks to increased competition in the market" angle. You, on the other hand, are playing the "CHINA BAD" angle.
Because China is bad. This is not an argument.
Yeah it's an opinion