In a strategic move, ASML Holding NV, the global leader in chip equipment manufacturing, complies with the US administration’s request to cease shipments of high-end chipmaking machines to China. This decision comes ahead of the enforcement of export bans on such sophisticated technological equipment.
The Biden administration’s bid to curb China’s advancement in semiconductor technology saw a significant development as ASML, a Dutch company, heeded the call to withhold certain machine deliveries to China. This action aligns with the US agenda of restricting the transfer of cutting-edge chipmaking tools to prevent Beijing from bolstering its military capabilities using American technology.
Recent Dutch government announcements reveal a tightening of regulations on semiconductor manufacturing equipment exports, a move viewed as a response to pressure from the US. The Netherlands cites national security concerns as the driving force behind these new export limitations.
China, on the receiving end of these restrictions, deems the decision detrimental to all parties involved, anticipating disruptions in chip production and supply chains due to these curbs.
ASML’s compliance with export regulations encompasses adherence to Dutch, EU, and US stipulations. The company downplays any significant financial implications resulting from these measures, asserting its commitment to regulatory compliance.
The escalating tech race between the US and China, particularly in the semiconductor domain, prompts the US to rally key suppliers like the Netherlands to join in imposing export limitations on critical chipmaking equipment, emphasizing the necessity of a unified front to ensure the effectiveness of these restrictions.
Plans by the Dutch government to institute new regulations entail a licensing requirement for ASML’s secondary top-tier product line, the deep ultraviolet (DUV) semiconductor equipment. Notably, ASML’s most advanced machines, the extreme ultraviolet (EUV) lithography machines, are already subject to restrictions and have never been shipped to China.
While the new Dutch regulations aren’t expected to take immediate effect, sources suggest a potential implementation date in September, approximately two months post-publication. Meanwhile, the forthcoming US rule aims to mandate licenses for exporting equipment to designated Chinese facilities, including those operated by SMIC, China’s largest chipmaker.
