WINGTECH(SH:600745) Guan Cha Zhe Wang·2025-11-04 06:50Core Points - The ongoing conflict between ASML China and the Dutch government highlights a significant shift in the geopolitical landscape regarding technology and trust [1][10] - The Dutch government invoked a 72-year-old law to take control of ASML, citing national security concerns, which has raised alarms about the predictability of Western markets [1][5][10] Company Overview - ASML was founded in 2017 and is headquartered in Nijmegen, Netherlands, producing semiconductors for various sectors including automotive and consumer electronics, employing over 14,000 people globally [3] - The company was acquired by China's Wingtech Technology for approximately $3.6 billion in 2018, making it one of the few large chip manufacturers in Europe under Chinese control [3] Legal and Regulatory Context - The Dutch government applied the "Goods Availability Act" to ASML, a law originally designed for wartime resource management, indicating a redefinition of what constitutes critical infrastructure [5][6] - This law allows the government to intervene in private companies when the availability of key products is at risk, now extending to the semiconductor industry [5][6] Geopolitical Implications - The actions taken by the Dutch government are closely coordinated with Washington, indicating a broader strategy to control advanced technology and its production locations [6][7] - The political environment has shifted from efficiency to security, impacting global manufacturing, particularly in the automotive sector [7][9] Economic Consequences - China's response to the Dutch decision includes restrictions on low-end and automotive-grade chip exports to Europe, affecting ASML's operations and the broader supply chain [9][10] - The situation has led to significant operational challenges for ASML, with its factories in China unable to ship products and European management under government oversight [9][10] Broader Trends - The ASML case illustrates a structural transformation in global trade, where the free flow of capital and technology is increasingly influenced by political considerations [10][11] - The incident signifies a new threshold in China-Europe relations, with both sides facing heightened anxieties over technological dependencies and market access [10][11]