Interventions in global value chains, as is currently happening with the export restriction of ASML machines in China, will lead to chip shortages. This is what CDA deputy Mustafa Amhaouch tells BNR political journalist Leendert Beekman. “I won’t be surprised if there are temporary chip shortages again in the long run.”
Amhaouch responds to the export restriction that the Netherlands imposes on ASML regarding advanced chip machines. While the deputy is not surprised by the intervention (“You’ve seen this a long time ago”), he supports very targeted export restrictions. ‘Like Europe, like the Netherlands, you don’t want to be addicted. You want to maintain a technological edge.’
However, it remains a balancing act, because ‘you will never keep everything closed’. ‘So you have to be very focused. What did you export to China? Because closing China to all kinds of chips will not happen.’ Amhaouch points out that China not only needs a lot of chips, but is still a major producer itself.
“You’ll Never Keep Everything Locked Up”
Effective intervention
Amhaouch believes the intervention is effective in preventing the Netherlands from giving up its technological edge in this area in favor of China. What the deputy is less convinced of is the strategic-military utility of the restriction: ‘I wonder why TSMC and Samsung and American companies can still produce chips. Ready-to-eat potato chips, which they export to China».
American pressure
The question remains to what extent the decision was an autonomous Dutch affair or whether the necessary pressure was exerted by Washington. “Holland has always said that we don’t sign on the cross”. Amhaouch acknowledges that there is always a field of tension and that “everyone is keeping an eye on each other”. The Member of Parliament underlines the importance of a level playing field between Japan, America and the Netherlands. “Because otherwise you’ll make the puppets dance.”
“Do you want to maintain a technological edge”
Amhaouch, himself a former ASML employee, doesn’t think the restriction will cause problems for ASML. At least not in the short term. It certainly won’t be a problem. But I worry about the chip shortage. We saw that after corona, so if you intervene in those value chains, they’re global. And China is a big producer of chips in the world. I won’t be surprised if there are temporary chip shortages again in the long run.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
