European Semiconductor Companies Say "No Plans to Suspend Asia Operations" Amid US-China Tensions

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Global semiconductor companies based in Europe have expressed their intention to continue their business in Asia amid escalating US-China tensions. Although the US is urging Europe to join in pressuring China, it appears that the influence of the Chinese market cannot be ignored.

According to the Financial Times (FT) on the 14th (local time), heads of European semiconductor companies such as STMicroelectronics, Germany's Infineon, and the Netherlands' NXP attended a special CEO event held in Munich, Germany, and made these remarks. They emphasized that they are seeking stability in their business in China following the US announcement last month of semiconductor export controls targeting China.

Jean-Marc Chery, CEO of STMicroelectronics, said, "(China) accounts for about 30% of our total sales. It is not a market we want to exit. We want to continue to stay." He added, "We just want the world to provide stability," and noted, "We can adapt to changes, but if those changes occur every six months, it will be a difficult issue."

Last month, the Biden administration announced export restrictions blocking the export of semiconductors, semiconductor software, equipment, and related personnel to China. Compared to US semiconductor equipment companies, European semiconductor companies are evaluated to be less affected as their products supplied to China are closer to mature processes rather than advanced ones.

Kurt Sievers, CEO of NXP, told FT, "(The US's new export controls) do not affect us," but added, "No one knows what will happen next." He said that while NXP's business in China is not significantly impacted, US-national employees have been instructed to stop communication with Chinese clients, adding, "This measure will not change our business but will make working in China somewhat more complicated."

The US, considering that the global semiconductor equipment market is dominated by three countries?the US, the Netherlands, and Japan?is demanding that the Netherlands and Japan apply the same trade measures. The global semiconductor equipment industry is led by US companies such as Applied Materials, Lam Research, and KLA, as well as Japan's Tokyo Electron and the Netherlands' ASML. It is reported that the US is making efforts to establish a multilateral agreement with Japan and the Netherlands.

This content was produced with the assistance of AI translation services.