Is building a completely self-sufficient supply chain in semiconductor technology unrealistic?
Published On: Monday, July 5, 2021 | By: Team KnowMyStock
American government worried these days about computer chips and China’s ambitions with the foundational technology. But a machine sold by a Dutch company has emerged as a key lever for policymakers — and illustrates how any country’s hopes of building a completely self-sufficient supply chain in semiconductor technology are unrealistic. The machine is made by ASML Holding, based in Veldhoven. Its system uses a different kind of light to define ultrasmall circuitry on chips, packing more performance into the small slices of silicon. The complex machine is widely acknowledged as necessary for making the most advanced chips, an ability with geopolitical implications. The Trump administration successfully lobbied the Dutch government to block shipments of such a machine to China in 2019, and the Biden administration has shown no signs of reversing that stance.
Manufacturers can’t produce leading-edge chips without the system, and “it is only made by the Dutch firm ASML,” say research analysts. According to them it would take China at least a decade to build its own similar equipment. “From China’s perspective, that is a frustrating thing.”
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