After unpredictable years under President Trump, the Dutch high-tech industry is hoping to calm down American policy. "I think a new era has dawned," said ASML CEO Peter Wennink after President Biden took office. ASML was in the news a lot last year due to a battle between the United States and China over the advanced chip machines it makes.
The high-tech industry is an important pillar of the Dutch economy. The chip machine maker from Veldhoven had a top year in 2020 and made 3.6 billion euros in profit. ASML is the most valuable company in the Netherlands, measured by stock market value. The company's machines - comparable in size to a city bus - are used to produce highly advanced chips for the latest smartphones, for example.
Big role US
America plays an important role in the production of chips and recent years the country has imposed restrictions on companies doing business with China. For example, the pressure was exerted on the Netherlands to stop the export of certain ASML machines.
Wennink does not expect the US to make a big turn now but mainly expects the Biden government to seek more consultation. "Under the Trump administration, a new omakase came out every few weeks, you constantly have to look at that again. 'What does that mean again?", Says Wennink in an interview with the NOS.
According to him, there was too little talk between governments. "When you talk to each other, you know what's coming and you can also prepare for what's to come."
Chipmaker NXP, another important player in the high-tech sector, recognizes this. "It was waking up in the morning to see what the US had decided," says Jos Bakker, an export specialist at the company. "When some measures come into effect immediately, it will be disastrous for our industry."
No pattern or consistency
NXP makes chips for the automotive industry and telecom sector, among other things. Bakker also criticizes how permits were issued by the US. These are necessary, he explains, to enable trade with China for some products. “We could not detect any pattern or consistency in the delivery of these,” he says.
Bakker also sees a shortage of manpower at the agency in the US that issues the permits and the ministries were not aligned, which could take months.
According to Wennink of ASML, it was good that Trump wanted to force China to change, for example, to tackle the stealing of trade secrets, but his approach was not effective. "The way I think we haven't made much progress. It has made business more difficult."
"The changing view of the rise of China is not Trump-specific. It started under Obama," said Marc Hesselink, a tech analyst at ING. "The unpredictability is not nice for the sector, because you make a lot of long-term investments."
The Dutch high-tech industry now expects more clarity. "It is becoming much more diplomatic, consistent and predictable," says Bakker, an export specialist at NXP.
Exerted pressure on Rutte
ASML makes the machines that make chips. The company has a monopoly position in the field of EUV (Extreme Ultraviolet) machines, which enables customers to create the most advanced chips. A machine that a Chinese party, in all probability the country's most important manufacturer, SMIC, also wants to have.
The US is completely against this: it does not want China to trump the country in the technological field. This put the Veldhoven company in very turbulent diplomatic waters. Reportedly, the Trump administration exerted pressure on Prime Minister Rutte on two occasions not to issue a license for the export of such a machine.
Now, a year after all the media attention for ASML, the license is still not there. NRC reported in October that the Biden government will also stop exports. The ministry does not want to tell the NOS how things are now.
Wennink maintains that the ball is still with the government. "There is continuous consultation between the ministry and the Americans about what to do. We just have to wait."