The Netherlands Is Why We Have AI, Not the U.S., Not China, Not Even NVIDIA
Everyone talks about OpenAI, Google, and NVIDIA. But none of them could power AI without one Dutch company: ASML.
When people think of artificial intelligence, they picture Silicon Valley giants, OpenAI, NVIDIA, Google. But the real reason AI exists today lies not in the U.S., China, or even with chipmakers. It starts in a quiet town in the Netherlands, where a company called ASML builds the machines that make AI chips possible.
This is the story of how one Dutch firm became the hidden engine behind the entire AI revolution.
The Machines That Made AI Possible
ASML’s extreme ultraviolet (EUV) lithography machines are the foundation of modern AI chips. These machines etch chip patterns as small as 8 nanometers, smaller than a virus. Each machine costs up to $200 million and weighs 180 tons. They are so complex they contain over 100,000 parts and take half a year to assemble in ultra-clean environments.
Inside each machine, molten tin droplets are blasted with 50,000 laser pulses per second. The resulting plasma emits EUV light at 13.5 nm. This light is reflected using mirrors so smooth that, if scaled to Germany, the biggest bump would be just 0.1 mm.
ASML’s EUV lineup includes two classes: the NXE series, used for 5nm and 3nm nodes, and the upcoming EXE high-NA machines for 2nm and below. These next-gen systems feature a 0.55 numerical aperture lens system and are expected to enter high-volume production in 2025 to 2026.
This precision allows chipmakers like TSMC, Intel, and Samsung to produce the 3nm and 2nm chips that power AI tools like ChatGPT and Tesla’s Full Self-Driving.
ASML’s Monopoly on EUV
As of 2025, ASML is the only company in the world that makes EUV machines. Rivals like Nikon and Canon operate in older deep ultraviolet (DUV) tech. Competing with ASML would take decades and more than $10 billion in R&D. That is why all advanced chips, from NVIDIA’s H100 GPU to Apple’s M4 processor, depend on ASML’s machines.
The company ships just 50 EUV machines per year. And the world lines up to buy them. By 2022, ASML had shipped roughly 140 EUV systems globally. That number remains low due to extreme complexity and supply chain limits.
From Near Collapse to Global Power
ASML began in 1984 as a spin-off from Philips and ASM International. In the 1990s, it nearly collapsed after its PAS 2000 machine failed due to hydraulic oil contamination in cleanrooms. This misstep caused major internal setbacks and low morale. But a full redesign led to the PAS 5500, saving the business.
In 1999, ASML joined forces with Intel and U.S. researchers to develop EUV technology. By 2011, ASML shipped its first production EUV unit. By 2022, it had cornered the global market.
The Geopolitics of AI Hardware
ASML’s machines have become geopolitical weapons. In 2024, the Netherlands, under U.S. pressure, blocked EUV sales to China. In 2025, the ban expanded to older DUV machines and software. Over 140 Chinese companies, including SMIC, were directly impacted by these restrictions.
As a result, ASML’s China sales dropped from 50% in 2024 to just 20% in 2025. According to ASML CEO Christophe Fouquet, these export controls are now “more about politics than security.” With the U.S.-China tech war intensifying, the Netherlands, through ASML, holds unprecedented influence in the global semiconductor race.
AI Will Drive the Market in 2025
In Q1 2025, ASML reported €7.7 billion in net sales and €2.4 billion in profit. More than half came from EUV machines. Despite limited production, demand is surging.
Speaking during the Q1 2025 earnings call, CEO Christophe Fouquet stated, “AI will drive the market in 2025,” citing the explosive demand for compute power in sectors like autonomous vehicles, cloud infrastructure, and mobile AI chips.
The Netherlands’ Silent Power
ASML isn’t a household name. But without it, advanced chips wouldn’t exist. No ChatGPT. No iPhones. No Tesla autopilot.
Every major AI leap depends on lasers built in the Netherlands. Next time you hear about AI, remember, it’s not just about models. It’s about the machines, and one company in Veldhoven that builds them.
Quick Facts
| Aspect | Details |
|---|---|
| Technology | EUV lithography (13.5 nm light, 8 nm features) |
| Machine Models | NXE (current), EXE (next-gen high-NA) |
| Key Buyers | TSMC, Samsung, Intel; indirectly: NVIDIA, Apple |
| Q1 2025 Revenue | €7.7B sales, €2.4B profit |
| China Impact | Revenue from China dropped from 50% to 20% |
| Restrictions | EUV + DUV bans; over 140 Chinese firms affected |
| Founded | 1984; first EUV machine shipped ~2011 |
| Shipment Rate | ~50 EUV machines per year globally |
| Mirror Precision | Deviation ≤ 0.1 mm if scaled to Germany |
| Light Source | Tin plasma at 200,000°C, 50K laser pulses/sec |
