The global semiconductor landscape is shifting rapidly as the Netherlands-based ASML finds itself at the centre of intensifying geopolitical tensions over chip technology exports. As the sole manufacturer of extreme ultraviolet (EUV) lithography machines essential for producing the world’s most advanced microchips, ASML has become a strategic lynchpin in the technology cold war between the United States, China, and Europe.
In June 2026, the Dutch government extended its export control regime, adding new restrictions on ASML’s shipments of deep ultraviolet (DUV) lithography systems to China. The move aligns the Netherlands more closely with US-led efforts to limit China’s access to cutting-edge semiconductor manufacturing equipment. ASML’s latest generation of EUV machines, which cost upwards of €350 million each, remain under the tightest restrictions and have never been shipped to Chinese firms.
“The Netherlands walks a diplomatic tightrope,” said Peter Wennink, ASML’s outgoing CEO, in a recent interview. “We are a Dutch company with European roots, but our supply chain and customer base are global. Export controls affect not just our bottom line but the entire semiconductor ecosystem.” ASML generates approximately 15% of its revenue from China, primarily from sales of older DUV systems used in mature chip manufacturing.
The impact on The Hague’s diplomatic community has been notable. The city, already home to the International Court of Justice, Europol, and numerous embassies, has seen a flurry of diplomatic activity around semiconductor policy. Chinese trade representatives have made multiple visits to the Ministry of Foreign Affairs, while US Commerce Department officials maintain a near-constant presence at the American embassy in Wassenaar.
For the Dutch tech sector more broadly, ASML’s dominance has created a thriving semiconductor ecosystem in the Eindhoven-Leiden corridor. Startups specialising in photonics, chip design, and advanced materials have proliferated, drawing talent from across Europe. The Dutch government recently committed an additional €2.5 billion through its “Project Beethoven” initiative to retain ASML and its suppliers in the Netherlands, addressing concerns the company might expand more aggressively abroad due to domestic talent shortages and infrastructure constraints.
ASML’s market capitalisation surpassed €400 billion in early 2026, making it Europe’s most valuable technology company. The company employs over 42,000 people globally, with roughly half based in the Netherlands. As chip demand continues to surge — driven by AI, electric vehicles, and 5G infrastructure — ASML’s position as an indispensable supplier looks set to deepen, along with the political scrutiny that comes with it.
