ASML CEO believes that the attempt to control the export of chips to China will not work. The executive said that this would not only fail to hinder the region’s technological progress but also end up hurting the US economy as well.
According to a Bloomberg report, Peter Wennink, the CEO of ASML Holding believes that trying to control chip export to the region will be detrimental to the US. This move arrives amid growing trade tensions between the US and China, which had also led to restrictions on the sale of the Dutch company’s advanced equipment to Chinese firms. The senior official said that “I believe that export controls are not the right way to manage your economic risks if you have determined that there is an economic risk,” during an online event.
The executive further argued that “you close China from access to technology, that will also cost non-Chinese economies a lot of jobs and a lot of income.” Wennink believes that while it may take China a while to build its own semiconductor equipment and technology due to lack of access to foreign technology, non China based firms will be barred from one of the world’s largest chip markets.
In other words, this would harm even US based companies that trade with China. The CEO also stated that ending ties with China completely could probably cost anywhere between 80 billion to 100 billion US Dollars in sales. Furthermore, it could also affect 125,000 jobs in the US as well, as per estimates from the US Commerce Department.
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