Following the U.S. The Netherlands is set to impose chip export control on China
The government of the Netherlands is moving forward with export restrictions on semiconductor manufacturing equipment. This follows political pressure from the United States. Being a key nation within the microchip supply chain, The Netherlands has become embroiled in political tensions between the United States and China. As the U.S. are looking to ensure that the most advanced chip technology is not being used by China, for their military efforts.
ASML, one of the largest semiconductor companies in the Netherlands are a large reason for this conflict. The U.S. is worried that if ASML ships its high-tech machines to China, chipmakers in the country could begin to manufacture the most advanced semiconductors in the world, which have extensive military and advanced artificial intelligence applications. The foreign trade minister, Liesje Schreinemacher said “Given the technological developments and the geopolitical context, the government has come to the conclusion that the existing export control framework for specific equipment used for the manufacture of semiconductors needs to be expanded, in the interests of national and international security.”
Although the letter does not reference China, it comes after pressure from the U.S. government, where in 2022 imposed their controls on chip exports to China. In the wake of the Dutch government’s announcement, ASML said in a statement that, “it will take time for these controls to be translated into legislation and take effect.”
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BMW invests in Oxford plant as it plans for more EVs
BMW are preparing to invest up to £600m in its Mini Cowley plant near Oxford. The funds are said to be used to prepare the plant for an electric vehicle manufacturing.
BMWs first generation of electric Minis was launched at the Cowley plant in 2019. The original model was based on an existing design, converted to run with an electric motor and batteries. However, last year the company announced production of most of its electric cars would move to China, to be built by a joint venture between BMW and Great Wall Motor. Contrary to popular belief BMW dispelled rumors of leaving the Oxford plant as they insisted Oxford would remain the “home of the Mini” and no jobs would be lost. With the goal that by 2030 all Minis will be electric.
The UK government is known to be keen for the UK to secure a stake in the emerging electric car industry, as conventionally powered models are phased out. They have offered support worth £75 million to BMW as they are looking to promote EV adoption. They are doing this through grants, if you are in the market for an EV, you can benefit from the Plug-In Grant, which offers a discount of up to £2,500 on new EVs. The £75 million that is being offered to BMW comes from the government’s Automotive Transformation Fund.
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Foxconn sees revenue slump as demand weakens
In the past 6 months Apple’s biggest supplier Foxconn has faced turmoil and been at the head of controversy. Ever since their factory in Zhengzhou, China was under strict covid regulation due to the Chinese government implementing their zero-covid policy, riots and protest broke out as a result. This led to Apple considering moving the means of production of the iPhone to different suppliers.
Now Foxconn has revealed its revenue last month fell by 12% compared to the same period in 2022 due to weaker demand for electronics. They also added that operations at the factory are recovering from Covid disruptions. Foxconn said in a statement on Sunday that revenue from computing, smart consumer electronics and cloud and networking products declined in February from a year earlier “due to conservative customers’ pull-in”.
Foxconn said in a statement on Sunday that revenue from computing, smart consumer electronics and cloud and networking products declined in February from a year earlier “due to conservative customers’ pull-in”.
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