Dutch tech giant ASML, the world’s leading semiconductor equipment maker, is caught in the crossfire of escalating US-China tensions. 🇳🇱💥 The company’s sales in the Chinese mainland—once its biggest market—have plummeted due to US export restrictions on advanced chipmaking machinery. Orders dropped sharply in Q3 2024, with revenue from China expected to halve by 2025. 🔻
ASML CEO Christophe Fouquet warned that these restrictions harm global economic interests, calling China a “critical market” and stressing that “decoupling” semiconductor supply chains is costly and unsustainable. The company’s stock recently faced its worst drop in 26 years, with net profits down 16% year-on-year. 📉
Meanwhile, Europe is doubling down on tech sovereignty. Countries like Germany and France are launching innovation funds and alliances to reduce reliance on US tech giants. 🚀 New EU regulations like the Digital Markets Act aim to curb the dominance of firms like Google and Apple, creating fairer playgrounds for European startups. 🇪🇺💡
But challenges remain: restricted access to US markets, higher operational costs, and limited R&D budgets threaten Europe’s tech ambitions. 🤯 Analysts say the “America First” approach could stifle global innovation—and ASML’s turmoil shows no one wins in a tech cold war. 🌐⚖️
