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By akohad Apr15,2024

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The U.S. has been slow to adopt extreme ultraviolet lithography (EUV) technology, crucial for producing advanced semiconductors essential for the AI revolution. ASML, a Dutch company, is the sole manufacturer of these pivotal $200 million EUV machines, which are predominantly purchased by Asian giants like TSMC in Taiwan and Samsung in South Korea.

Meanwhile, Intel, a key U.S. player in the semiconductor industry, entered the EUV space significantly later than its Asian counterparts. The U.S. government, under the administrations of both Donald Trump and Joe Biden, has focused efforts on preventing these strategic machines from being sold to China, highlighting the geopolitical sensitivity surrounding advanced chip technology.

Global Context:

Other nations, particularly Taiwan and South Korea, have gained a competitive edge in AI chip technology through early and aggressive investments in EUV technology. This has positioned them at the forefront of the semiconductor manufacturing industry, a crucial sector for powering AI advancements and supporting global economic growth. The U.S., by contrast, has had to play catch-up, reflecting broader challenges in maintaining technological supremacy in critical areas like AI chip production.

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