According to the latest news, ASML CEO believes that the attempt to control the export of chips to China will not work because it would not only fail to hinder the region’s technological progress but also hurt the US economy.
As per a Bloomberg report, Peter Wennink, the CEO of ASML Holding believes the US economy will be hurt if its administration tries to control chip export to China. Interestingly, the move arrives amid another growing trade tension between the US and China. Recently, for these strict controls, the Dutch company’s advanced equipment to Chinese firms was affected.
During an online event, Peter Wennink said “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”. He further said, “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 due to lack of access to foreign technology, China will take time in developing its own semiconductor equipment and allied technologies but non-China-based firms will also get affected as they were forcefully barred from one of the world’s largest chip markets. He clearly said that this would harm the US economy as well.
According to Peter Wennink’s estimates, ending ties with China would cost the US something between 80 billion to 100 billion US Dollars. As per the US Commerce Department, it will also affect 125,000 jobs in the US.