Dutch minister vows to defend ASML interests ahead of China visit -FD
Reuters
Published Mar 26, 2024 10:48
AMSTERDAM (Reuters) - The Dutch trade minister said on Tuesday that defending the interests of ASML (AS:ASML) is his "number one" priority, in an interview with Dutch business daily FD, published ahead of a high-stakes meeting with Chinese President Xi Jinping.
ASML, the largest supplier of equipment to computer chip makers "is the most important company that we have," Geoffrey van Leeuwen said in remarks confirmed by his office.
"Protecting the interests of ASML is number one."
The remarks come ahead of a meeting at which Van Leeuwen and Dutch Prime Minister Mark Rutte are expected to meet with Xi and other top Chinese officials to discuss policy around the export and servicing of ASML's equipment.
While ASML is the Netherlands' largest company and China is its second-largest market following Taiwan, the company has faced increasing restrictions on exports to China from the Dutch and U.S. governments as Washington seeks to undermine Beijing's ability to make its own chips.
In the same interview, Van Leeuwen added "we also say that the national safety of ourselves and our partners goes before economic interests."
The remarks illustrate the diplomatic tightrope the Dutch government must walk as ASML has become a flashpoint in the U.S-China "chip war". The company itself has become dissatisfied with Dutch government support, with the CEO threatening to "leave" the Netherlands if its growth plans cannot be realized here.
The discussions in China will revolve around whether ASML will receive Dutch government licenses to continue maintaining billions of euros worth of advanced equipment it has already sold to Chinese customers that now falls under export restrictions when current licenses expire, many of them by Dec. 31, 2024.
Export restrictions so far have had only a modest impact on ASML's financial performance as the dominant company in its field. But in the long term if the Netherlands is seen as an unreliable business partner, Chinese chipmakers may seek to replace its equipment with that of competitors such as Nikon and Canon of Japan, or Chinese domestic firm SMEE, which is seeking to improve its products.
($1 = 0.9219 euros)
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Written By: Reuters
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