On January 3rd, yesterday morning, the global leader in lithography machines ASML announced on its official website that the Dutch government recently revoked some licenses for the delivery of the TWINSCAN NXT:2050i and NXT:2100i lithography machines for the year 2023. This will impact a few of its Chinese customers.
In March 2023, the new export restrictions imposed by the Dutch government require ASML to obtain export licenses to ship DUV lithography machines, primarily affecting the procurement of high-end DUV lithography machine models capable of producing advanced process chips, but not impacting models predating the 2000i.
However, ASML had already obtained advanced export licenses, allowing them to sell the NXT:2000i and more advanced models like the NXT:2050i and NXT:2100i outside in 2023, thus minimizing significant impacts.
ASML also revealed in the statement that it had discussions with the U.S. government regarding the scope and implications of its export control regulations. Just before ASML’s official statement release, reports from foreign media, citing insiders, suggested that U.S. officials demanded ASML to immediately halt the pre-arranged shipment of certain machines to Chinese customers.
01
Advanced DUV Lithography Machines Banned Without Impact on 2023 Performance
DUV lithography machines are utilized in manufacturing chips with process nodes ranging from 28nm to even more advanced 7nm nodes theoretically. Major suppliers include the Netherlands-based ASML, Japan’s Nikon, and Canon.
In March 2023, the Dutch government announced new restrictions on the export of semiconductor technology, mandating ASML to apply for export licenses to ship DUV lithography machines. As per ASML’s interpretation, these new regulations primarily affect the procurement of high-end DUV lithography machine models capable of producing advanced process chips, while not immediately impacting models predating the 2000i. The ban is set to be enforced starting from September 1st.
At that time, the initial ban didn’t significantly impact ASML. The company had previously obtained an export license allowing them to sell NXT:2000i and more advanced DUV lithography machines like NXT:2050i and NXT:2100i throughout 2023.
However, at the beginning of 2024, this license was revoked, affecting ASML’s TWINSCAN NXT:2050i and NXT:2100i lithography machines.
The TWINSCAN NXT:2050i is a high-productivity, dual-stage immersion lithography tool specifically designed for high-volume production of 300mm wafers at advanced nodes.
ASML anticipates that the current revocation of export licenses and the latest export control measures imposed by the United States will not significantly impact its performance for the year 2023.
02
U.S. Government’s Ongoing Pressure: Prohibition of DUV Lithography Machine Exports
ASML disclosed in a statement that they recently engaged in discussions with the United States government regarding the scope and impact of U.S. export control regulations.
This might be linked to the new regulations announced by the United States in October 2023. The U.S. government stated that if ASML’s “Twinscan NXT1930Di” equipment contains any U.S. components, the U.S. government holds the authority to restrict its export. This DUV lithography machine can be used to manufacture relatively advanced computer chips as well as mid-range and older chips.
Insiders mentioned that by the end of last year, U.S. National Security Advisor Jake Sullivan had already contacted the Dutch government, but the Dutch government requested the U.S. government to directly communicate with ASML regarding the shipment of immersion deep ultraviolet lithography machines.
According to reports from foreign media, weeks before ASML’s export licenses expired, the U.S. government demanded that ASML cancel a portion of the machines destined for export to China. However, the exact quantity remains unclear, and the cost of each of these devices could be as high as tens of millions of dollars.
Spokespersons from the U.S. White House National Security Council and the Dutch Ministry of Foreign Affairs declined to comment.
03
Conclusion: Impact of Anti-Globalization Layout on Supply Chain Stability
ASML holds a crucial position in the global semiconductor supply chain as the sole manufacturer capable of producing highly precise Extreme Ultraviolet (EUV) lithography machines, which are vital equipment for manufacturing advanced chips. The issuance and enforcement of these export bans will impact the global semiconductor industry.
Peter Wennink, ASML’s outgoing CEO, informed investors in October 2023 that these new restrictive measures would affect up to 15% of the company’s sales in China.
While the U.S. government intensifies export bans, it continues to pressure other countries to prohibit the export of related equipment. The U.S. government’s anti-globalization efforts aim to suppress China’s semiconductor expertise, negatively affecting the stability of international industry and supply chains.
Although ASML’s suspension of deliveries and the semiconductor technology export bans by the U.S. and Dutch governments may pose some setbacks for the rapid advancement of China’s semiconductor industry, it, in turn, provides the impetus for domestic companies to accelerate self-sufficiency and technological innovation.
Related:
- Global Media on ASML: Unforeseen Changes Ahead!
- Korea Expands Semiconductor Industry Aid to 33 Trillion KRW
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