Europe has made another big move in the field of chips. On Nov. 23, EU member states agreed to spend more than 43 billion euros (320 billion yuan) on developing the chip industry, aimed at supporting local chip supply chains and reducing dependence on US and Asian manufacturers. The pressure on the EU to accelerate chip subsidies may come from the US, whose Chip and Science Act spends $52.7 billion to subsidize companies that invest in chip factories in the US.

Some analysts pointed out that the global chip giants have announced plans to launch chip factories in the United States, including a number of chip companies in Europe and Asia, which undoubtedly put pressure on European governments.

While the "chip war" is becoming more and more fierce, an official statement from the Netherlands, an European chip power, has also attracted market attention. On November 24th, the World wide Web quoted Bloomberg as saying that in trade negotiations with the United States and other countries, the Netherlands will make its own decision on ASML Holding NV's (ASML) sales of chip equipment to China. If the Netherlands put this issue into the "EU basket" to negotiate with the United States, the result is to send DUV to the American hands, "our situation will be even worse."

At present, Wall Street giants are looking forward to investment in 2023, one of the important signals is that there are more and more bulls on Chinese stocks. Recently, Michael Hartnett, chief investment strategist of Bank of America Corporation, listed buying Chinese stocks as "the first choice for trading in 2023" in a newly released report.

The European Union smashed 320 billion

A needle-to-wheat "chip war" is imminent.

EU member states agreed to invest more than 43 billion euros (320 billion yuan) in the development of the chip industry, aimed at supporting local chip supply chains and reducing reliance on US and Asian manufacturers, Reuters reported on Nov. 24, citing Reuters.

The Czech Republic, which holds the rotating EU presidency, said envoys agreed on a revised version of the commission's proposal, including allowing governments to subsidize a wider range of chip companies, not just state-of-the-art chips. the subsidies will cover chips that bring innovation in computing power, energy efficiency, environmental efficiency and artificial intelligence.

The purpose of the Chip Act is to ensure that the EU has the necessary tools, skills and technical capabilities to upgrade advanced chip design, manufacturing, packaging and other areas, so as to ensure the stability of the EU semiconductor supply chain and reduce external dependence.

According to the agenda, EU ministers will meet on December 1 local time and are expected to approve the chip subsidy scheme, which will be finally approved by the European Parliament in 2023 and will become law.

In fact, earlier this year, the European Union began to brew this high-profile "chip bill", which plans to significantly increase the EU's share of global chip production. Europe's share of chip production has fallen from 24 per cent in 2000 to 8 per cent today, and the Chip Act aims to raise that figure to 20 per cent by 2030.

At the time, European Commission President von der Lane said the Chip Act could change the EU's global competitiveness. In the short term, it will enable the EU to anticipate and avoid supply chain disruptions; in the medium term, it will help the EU become a leader in the chip market.

The pressure on the EU to accelerate the chip bill may come from the United States. In August, US President Joe Biden formally signed the Chip and Science Act, which includes $52.7 billion (RMB 376.8 billion) for semiconductor research, manufacturing and labor development in the United States. provide a 25% tax credit for companies that invest in chip factories in the United States.

Some analysts pointed out that under the temptation of cash subsidies, global chip giants have announced plans to launch chip factories in the United States, including a number of chip companies in Europe and Asia, which undoubtedly put pressure on European governments and will further reduce Europe's share of the global chip market.

In fact, the sharper contradiction between the European Union and the United States comes from the provisions on electric car subsidies in the inflation reduction Act signed by Biden. French Finance Minister Lemerre said in Paris on November 22nd that France and Germany agreed that Europe needed to respond forcefully to the US government's plan to support some US industries.

The Netherlands strongly refused.

While the "chip war" is becoming more and more intense, an official statement from the Netherlands, an European chip power, has attracted market attention.

Liesje Schreinemacher, minister of foreign trade and development cooperation of the Netherlands, said that in trade negotiations with the United States and other countries, the Netherlands will make its own decision on ASML Holding NV's sale of chip equipment to China, the World wide Web reported, citing Bloomberg.

Schreiner Maher stressed that the most important thing is to defend their own interests-national security, economic interests. If the Netherlands put this issue into the "basket of the European Union" to negotiate with the United States, the result is that they send the deep ultraviolet lithography machine (DUV) to the hands of the Americans. "our situation will be even worse."

According to people familiar with the matter, the Dutch government believes that if the measures requested by the United States are implemented, it may damage Dutch trade relations with China, Bloomberg reported.

In fact, this is not the first time that Schreiner Maher has spoken on the issue of semiconductor equipment exports to China. She said on the 18th that the United States should not expect the Netherlands to adopt its export restrictions to China. The Netherlands will not undoubtedly copy the measures of the United States (exports to China).

The comments come as US officials have been pressing the Dutch government to ban the sale of immersion lithography machines, the most advanced of ASML Holding NV's DUV machines, to China. A delegation of senior US officials, including Deputy Secretary of Commerce Alan Estevez, will travel to the Netherlands this month to discuss related export control issues.

It is worth mentioning that ASML Holding NV occupies a leading position in the market of cutting-edge chip manufacturing equipment, accounting for 60% of the global lithography market, and is the only company in the world that can supply EUV lithography machines for chips below 7 nm.

ASML Holding NV's DUV lithography machine can cover 7-14 nm chips, and the company currently has a 100% monopoly on optical-core equipment that can make chips less than 10 nm. Therefore, the attitude of the Netherlands is undoubtedly very important.

At present, in the trade with China, ASML Holding NV only supplies a relatively low level of DUV (Deep Ultraviolet Lithography), which aims at the manufacture of chips with process technology above 7nm, covering most of the mature process chips on the current market, and China is also one of the biggest customers of ASML Holding NV DUV lithography machine.