Netherlands Prime Minister Mark Rutte speaks with U.S. President Joe Biden. The U.S. has been putting pressure on the Netherlands to block exports to China of high-tech semiconductor equipment. The Netherlands is home to ASML, one of the most important companies in the global semiconductor supply chain.
Susan Walsh | AFP | Getty Images
Washington has its eyes on the Netherlands, a small but important European country that could hold the key to China’s future in manufacturing cutting-edge semiconductors.
The Netherlands has a population of just more than 17 million people — but is also home to ASML, a star of the global semiconductor supply chain. It produces a high-tech chipmaking machine that China is keen to have access to.
The U.S. appears to have persuaded the Netherlands to prevent shipments to China for now, but relations look rocky as the Dutch weigh up their economic prospects if they’re cut off from the world’s second-largest economy.
These machines are required to make the most advanced chips in the world, and ASML has a de facto monopoly on them, because it’s the only company in the world to make them.
This makes ASML one of the most important chip companies in the world.
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U.S.-Netherlands talks
U.S. pressure on the Netherlands appears to have begun in 2018 under the administration of former President Donald Trump. According to a Reuters report from 2020, the Dutch government withdrew ASML’s license to export its EUV machines to China after extensive lobbying from the U.S. government.
Under Trump, the U.S. started a trade war with China that morphed into a battle for tech supremacy, with Washington attempting to cut off critical technology supplies to Chinese companies.
President Joe Biden‘s administration has taken the assault on China’s chip industry one step further.
In October, the U.S. Department of Commerce’s Bureau of Industry and Security introduced sweeping rules requiring companies to apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China.
Pressure on the Netherlands to fall in line with U.S. rules continues. Alan Estevez, the undersecretary of commerce for industry and security at the U.S. Department of Commerce, and Tarun Chhabra, senior director for technology and national security at the U.S. National Security Council, reportedly spoke with Dutch officials this month.
“Now that the U.S. government has put unilateral end-use controls on U.S. companies, these controls would be futile from their perspective if China could get these machines from ASML or Tokyo Electron (Japan),” Pranay Kotasthane, chairperson of the high-tech geopolitics program at the Takshashila Institution, told CNBC.
“Hence the U.S. government would want to convert these unilateral controls into multilateral ones by getting countries such as the Netherlands, South Korea, and Japan on board.”
The National Security Council declined to comment when contacted by CNBC, while the Department of Commerce did not respond to a request for comment.
A spokesperson for the Netherlands’ Ministry of Foreign Affairs said it does not comment on visits by officials. The ministry did not reply to additional questions from CNBC.
Tensions
Last week, U.S. Secretary of State Antony Blinken hailed the “growing convergence in the approach to the challenges that China poses,” particularly with the European Union.
But the picture from the Netherlands does not appear as rosy.
“Obviously we are weighing our own interests, our national security interest is of utmost importance, obviously we have economic interests as you may understand and the geopolitical factor always plays a role as well,” Liesje Schreinemacher, minister for foreign trade and development cooperation of the Netherlands, said last week.
She added that Beijing is “an important trade partner.”
In this photo illustration, the DeepSeek logo is seen displayed on a smartphone screen and in the background, the flag of the European Union.
Thomas Fuller | Sopa Images | Lightrocket | Getty Images
One of Germany’s data protection watchdogs on Friday said DeepSeek’s app illegally sends user data to China and asked Google and Apple to consider blocking the artificial intelligence service.
Berlin’s data protection commissioner Meike Kamp said in a statement that DeepSeek’s transfer of German user data to China is “unlawful.”
There is not a readily available way to get in touch with DeepSeek. CNBC has reached out to DeepSeek’s privacy team.
Chinese firm DeepSeek made waves this year when it launched an AI model that it claimed was created at a fraction of the cost of competitors, using less advanced Nvidia chips.
The company also has its own global chatbot AI app, which has been downloaded millions of times, garnering scrutiny.
If the German case against DeepSeek progresses, it could lead to a European Union-wide ban for the app, some experts say.
“It is certainly possible that this incident could lead to an EU-wide ban because the rules that apply in Germany are the same elsewhere in the EU and also in the UK,” Matt Holman, specialist AI and data lawyer at Cripps, told CNBC by email. There are a few steps before this would become reality, however.
What is Germany’s issue with DeepSeek?
“DeepSeek has not been able to convincingly demonstrate to my authority that the data of German users is protected in China at a level equivalent to that of the European Union,” Germany’s Kamp said, according to a CNBC translation. “Chinese authorities have extensive access rights to personal data within the sphere of influence of Chinese companies.”
Under the European Union’s General Data Protection Regulation — the bloc’s huge data protection law — companies are prohibited from sending data outside the region unless specific safeguards are in place at the countries of arrival. Those safeguards must meet GDPR requirements in Europe.
In short, the Berlin data protection commissioner is concerned that Chinese authorities could access German user data sent by DeepSeek to China.
What are the next steps?
The Berlin data watchdog on Friday said it had informed Apple and Google of DeepSeek’s alleged violations and expects the U.S. tech giants to carry out a “timely review” about whether to ban the app or not from their respective app stores.
It’s unclear if Google and Apple will comply. CNBC has reached out to both companies for comment.
Cripps’ Holman said that while and EU-wide ban is possible, there needs to be consensus among the bloc’s regulators first that this would be an appropriate step.
If Apple and Google remove DeepSeek from their app stores, this would effectively amount to an EU-wide ban, Holman said.
“The implications for Deepseek could be, unsurprisingly, quite stark. Access to German citizens’ data will be curtailed. In short order this could expand to the remainder of the EU if other national regulators follow suits meaning EU — and potentially UK — markets will be curtailed if Apple and Google disables the app,” Holman said.
This is not DeepSeek’s first run-in with regulators in Europe. Italian data protection authorities in February ordered DeepSeek to block its app in the country. Meanwhile, Irish authorities in January asked DeepSeek for information on its data processing.
Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp., speaks during the company’s annual general meeting in Tokyo, Japan, on Friday, June 27, 2025.
Bloomberg | Bloomberg | Getty Images
SoftBank is “all in” on OpenAI, CEO Masayoshi Son said on Friday, as the Japanese tech giant looks to realize its vision of “artificial superintelligence.”
This year, the Japanese multinational conglomerate has been increasing its investments in OpenAI and participating in joint ventures such as the $500 billion Stargate project.
According to Son, SoftBank is now “all in” on the artificial intelligence company, with total planned investments in the company reaching about 4.8 trillion Japanese yen ($33.2 billion), despite it being unlisted and unprofitable.
“I think that OpenAI will be listed eventually and, in my belief, will become the most valuable company in the world,” Son said. He added, however, that it “takes bravery to invest” in such a company.
As it turns out, Son has long held that conviction. During the shareholders’ meeting, he revealed that before 2019, OpenAI CEO Sam Altman had asked him if SoftBank would invest $10 billion into the company.
“I said, yes, I would … I was serious because I had financial resources thanks to Vision Fund’s performance. But obviously, Sam talked to other potential investors, and eventually, they picked Microsoft,” he said.
Microsoft ultimately inked the deal, which made it the exclusive provider of computing power for OpenAI’s research, products, and programming interfaces for developers. However, Microsoft lost its status as OpenAI’s exclusive cloud provider at the start of this year.
Touching upon the reports, Son suggested that Altman should have chosen SoftBank, not Microsoft, as its initial partner, though he noted that SoftBank was smaller at the time and that Microsoft had its global supply chains, technical talents and brand value to offer.
However, on Friday, Son said that his conviction on OpenAI has only grown stronger and that SoftBank will continue to deepen its relationship with the company, regardless of what happens with Microsoft.
Artificial superintelligence
Part of Son’s belief in OpenAI stems from his desire for SoftBank to be at the center of “artificial superintelligence,” which he has described as AI that is 10,000 times smarter than humans.
Son said on Friday that he wants SoftBank to become the biggest platform provider for this ASI within the next decade, serving as the “organizer of the industry in the artificial superintelligence era.”
He added that SoftBank’s partnership with OpenAI, along with British semiconductor company Arm, which SoftBank acquired in 2016, would be essential to those plans.
Bloomberg News reported last week, citing people familiar with the matter, that Son is also considering establishing a $1 trillion industrial complex in the U.S. that will develop AI.
The SpaceX Starbase industrial complex and rocket launch facility in Boca Chica, Texas, US, on Thursday, April 17, 2025.
Mark Felix | Bloomberg | Getty Images
A SpaceX crane collapse at the company’s Starbase, Texas facility on Tuesday has prompted an investigation by the Occupational Safety and Health Administration, the federal agency told CNBC in an email.
The crane collapse was captured in a livestream by Lab Padre on YouTube, a SpaceX-focused channel. Clips from Lab Padre were widely shared on social media, including on X, which is owned by SpaceX CEO Elon Musk.
It wasn’t immediately clear whether any SpaceX workers were injured as a result of the incident. Musk and other company executives didn’t respond to a request for comment.
A spokesperson for OSHA told CNBC that more details will be available after the investigation is complete.
SpaceX has a history of workplace injuries that exceed industry average, Reuters previously reported. In 2014, one of the company’s employees, Simon LeBlanc, died on the job due to what OSHA concluded was a failure by the company to protect him from a clear hazard.
Earlier this year, the Department of Government Efficiency (DOGE), a Musk-led effort by the Trump administration to slash the size of the federal government, cut OSHA’s resources and shuttered at least 11 of its field offices. Through DOGE, Musk sought to reduce federal agency budgets, personnel and even certain regulations, limiting their ability to investigate and enforce existing laws.
The SpaceX crane collapse followed a string of explosions and other setbacks for the company’s Starship Super Heavy launch vehicle, the largest rocket ever flown, which is key to Musk’s ambition to transport equipment and people to Mars.
Environmental activists in the U.S. and Mexico say those explosions have harmed sensitive habitat, wildlife and marine life. SpaceX said, in posts online, that its activity had not harmed the surrounding area during the most recent explosion on June 18.
Starship was previously expected to play an important part in NASA’s effort to return to the moon. SpaceX had earned more than $20 billion in federal government contracts mostly from the Department of Defense and NASA.
Meanwhile, NASA’s proposed lean budget for the next year has not yet been authorized by Congress and could impact the agency’s business with SpaceX, and shift the focus of its missions.
Musk, who was President Donald Trump’s biggest financial backer, sought to appoint his friend Jared Issacman, a commercial astronaut, to lead NASA under the second Trump administration. Trump withdrew his nomination of Isaacman as the president bickered with Musk in the waning days of the billionaire’s formal involvement with the White House.