> There is a reason why ASML's next-generation research photolithography machine is currently being installed and developed in upstate New York, and not somewhere in the Netherlands. The same reason that Cymer is still in San Diego instead of being relocated to Europe.

Why is the Netherlands government even allowing this?

The supply chain both in parts for their machines, but also in terms of research and technology for new machines is very deep and very international. If the US states that a technology can only be used by ASML if they keep R&D in the US, then there is no easy alternative for ASML.

That is true not only for ASML, but for the semiconductor industry in general. The number of smaller, specialized companies for certain tools, chemicals and software is staggering. And they sit all over the US, Europe, Japan, Taiwan and Korea.

The entire multinational effort is in US-Europe-E.Asian countries which are a coordinated allied bloc. The Netherlands allows it because they are entirely aligned.

Strong mutual defense agreements cover four out of the five crucial countries here (NATO, Anpo, MDT US/ROK) and the last (Taiwan) has arms sales assurances.

It’s not like these are strongly opposed nations or anything. Part of the same fleet in some sense.

The EUV lithography process and other pieces that comprise what ASML sells was developed with US government funding, and it remains encumbered by that. The US government thus has veto power over the tech, and thus over ASML.

Because ASML acquired the US company that created this tech and the agreement for allowing Netherlands to do so was that the tech and know how remain in the US.

if they dont allow it ASML will move away and they have nothing.