https://sputnikglobe.com/20240102/us-pressured-dutch-chipmaker-asml-to-halt-sales-to-china-1115944798.html

US Pressured Dutch Chipmaker ASML to Halt Sales to China

US Pressured Dutch Chipmaker ASML to Halt Sales to China

Sputnik International

ASML, the sole producer of deep ultraviolet (DUV) lithography machines vital for semiconductor production had restricted the export of the equipment to China, impacting various Chinese clients. However, the outgoing ASML CEO has warned of the repercussions of such a move.

2024-01-02T14:05+0000

2024-01-02T14:05+0000

2024-01-02T14:05+0000

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A Netherland-based multinational microchip maker ASML Holding NV has halted scheduled shipments of production equipment to China at the behest of the United States. That came days before the implementation of export controls on advanced ultraviolet lithography machines, sources familiar with the matter revealed to the press.Under Biden's government the US is stepping up attempts to hold back Beijing's rapid development in the advanced semiconductor sector, with its allies also constraining chip tech exports.Last year, Huawei Technologies debuted the Mate 60 Pro smartphone, featuring the indigenously-produced Kirin 9000S chip. The development was seen by the US as a challenge to Apple's iPhone 15, which is powered by next-generation chips produced using ASML's immersion lithography and was launched in 2023.ASML confirmed that the Dutch authorities had restricted the export of specific lithography systems to China. Addressing media reports, the Dutch chipmaker mentioned ongoing talks with the US regarding export restrictions, offering no more details.As the news broke, the stock values of Chinese chipmakers saw dips in their stock values. Semiconductor Manufacturing International (SMIC), a key supplier of Huawei's 7-nanometer processors, saw its stock fall by three percent in Hong Kong on Tuesday. Hua Hong Semiconductor suffered a similar slump, dropping by 2.8 percent. ASML, Europe’s most valuable technology firm, remained relatively stable at €679.80 at 9:32 a.m. in Amsterdam trading after falling by as much as 1.8 percent earlier.US National Security Adviser Jake Sullivan contacted the Dutch government late last year about the ASML's supply of the immersion deep ultraviolet lithography machines to China. Dutch officials told the White House to speak directly to the European chip giant. Deliveries of some Chinese orders of the machines, each priced in the tens of millions of dollars, were reportedly canceled although the precise number remains undisclosed.A representative from the Chinese Foreign Ministry denounced the US for meddling in China's affairs, labeling it as a demonstration of American "hegemony" imposing artificial restrictions on other nations.The official also called upon the Dutch authorities to "respect the spirit of the contract and world order, to safeguard the mutual benefits of the two countries."Under former president Donald Trump in 2019 the US pressured the Dutch government to block ASML, the sole producer of deep ultraviolet lithography machines vital for semiconductor production, from selling to China. The Biden administration followed suit by pressuring the Netherlands to tighten export controls on ASML's second-tier DUV machines to China from January 1 this year. In response, Beijing increased its imports of the restricted machines.Chinese customs figues show imports of lithography machines into the country surged fivefold to $3.7 billion from July to November 2023.Source: China CustomsIn Q3 2023, China accounted for nearly half of ASML's sales, representing 46 percent, which marked a significant increase from 24 percent in Q2 and just 8 percent in Q1 ending in March. This surge came as regional companies hastened their machine imports in anticipation of forthcoming export controls.In October, ASML's departing CEO, Peter Wennink, alerted shareholders that the imposed constraints might affect around 15 percent of their sales in China. He has voiced opposition, fearing these actions might prompt China to forge its own technological solutions.“The more you put them under pressure, the more likely it is that they will double up their efforts,” Wennink told a news outlet.

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asml holding nv, deep ultraviolet lithography machines, us-china semiconductor technology tensions, semiconductor industry, chip export controls, immersion lithography machines, us chip restrictions, dutch government, semiconductor manufacturing, asml sales in china.