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US wants ASML to stop selling chipmaking tools to China

The United States Government sent a notice to its counterparts in the Netherlands, so that the leading Dutch company in the manufacture of lithographic machinesASMLis prohibited from selling virtually all lithography tools produced in the country to Chinese companies.

If US politicians are successful, it will derail China’s efforts to become a world-class semiconductor producer and thwart the plan. Made in China 2025 from the country. Of course, this will now encourage the Chinese government to also focus on development your own machinery to bring your manufacturing processes to life.

ASML is the world’s largest manufacturer of lithography tools used to manufacture all types of chips. However, the company cannot sell its most advanced extreme ultraviolet (EUV) lithography equipment to its Chinese customers. However, American politicians propose increase current restrictions under which ASML will not be able to sell its tools for deep ultraviolet lithography (DUV) to Chinese customers, as revealed by Bloomberg.

DUV lithography is used to manufacture the vast majority of widely used chips that power personal computers, servers, mobile electronics, autonomous vehicles and robots.

ASML China

Now comes the interesting part, and that is that this market accounted for 16% of ASML’s revenue in 2021, i.e. $18.6 billionwhich came from various local companies in China, as well as major players such as TSMC or Samsung with the factories of the country.

To avoid losing this piece of the cake, ASML defended itself by indicating that it was not the only manufacturer of DUV tools on the market, since Canon and Nikon have similar machines, but that does not matter in the USA, since they are interested turn off the tap and replace all ASML production with other companies it doesn’t happen overnightwhich implies serious technological delays for the country.

“The discussion is not new. No decision has been made and we don’t want to speculate or comment on rumours,” an ASML spokeswoman said.

“We have no information on this,” a Nikon spokeswoman said.

With this decision, it also loses the rest of the market, because leaving Chinese companies without semiconductor manufacturing tools will have repercussions in the rest of the world. For example, a significant portion of DRAM and 3D NAND memory production is done in China. Leave companies like Samsung, SK Hynix and YMTC without their Chinese factories will affect the global chip supply chain and electronic products.

Moreover, TSMC, SMIC and Chinese companies like Hua Hong produce a large number of chips for their international customers; if they cut production, that too will affect American chip designersbut nothing seems to matter in this trade war.

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