US allies may push back against moves to restrict chip tools

The chief executive of Dutch semiconductor equipment maker ASML, which has been caught up in Washington's technology crackdown on China, said reportedly that US-led restrictions on the company's exports to China are becoming more "economically motivated" over time, noting that "there will be more pushback."

The remark shows the rising pressure imposed by the US on its allies in order to restrict chip equipment export to China. The restrictions have negatively impacted the profits of ASML and other similar companies, experts said on Thursday. 

The experts said that the serious disruption of global chip chains by the US will backfire on Western companies as they may lose the Chinese market in the long run.
"I think to make the case that this is about national security is getting harder and harder," Christophe Fouquet, the chief executive of ASML, said on Wednesday at a Citi conference in New York, Reuters reported.

"Most probably there will be more pressure for restrictions, but I also think there will be more pushback and I think we have to hope we reach a certain equilibrium, because as a business what we all want is a bit of clarity, a bit of stability," Fouquet said.

US pressure on its allies to restrict China's access to semiconductor manufacturing tools has directly affected companies like ASML, especially since they may lose the important Chinese market in the long run, Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Thursday.

The market won't support the economic coercion by the US, while strong demand for mature chips has driven the rapid development of China's semiconductor sector lately, analysts said.

Fu Liang, a veteran industry expert, told the Global Times on Thursday that Western companies including ASML are unlikely to abandon the vast Chinese market, and they will walk a fine line of complying with US rules while still serving their Chinese clients.