Netherlands Curbs more ASML Exports, in Line with U.S. Rules

Dutch company is Europe's top semiconductor equipment maker

·         Dutch government today published an updated license requirement regarding the export of immersion DUV semiconductor equipment.

·         Immersion DUV lithographs marked a key advancement in the chip industry.

·         SMIC and Huawei to access cutting-edge chips, such as the 7-nm grade chips Huawei currently uses in its flagship phones and AI computing servers.

·         ASML is the market leader in making lithography machines for advanced chip manufacturing, while Japan's Canon and Nikon also provide the machines.

 

[ABS News Service/06.09.2024]

The Netherlands is tightening restrictions on exports of advanced chipmaking machines from top European semiconductor equipment maker ASML to bring the country's curbs in line with those of the U.S.

Dutch curbs introduced in September 2023 restrict exports of the company's most high-end machines, while Washington unilaterally imposed restrictions that limit shipments of ASML's less-advanced tools to China.

The Netherlands' latest curbs now apply to all types of immersion deep ultraviolet (DUV) lithography equipment, which is essential for making semiconductors at the 40-nanometer grade and better. Such semiconductors, the government said in a news release, can be used in advanced military applications, making the restriction of these machines a matter of national security.

ASML said it did not expect any material impact from the latest rule change, adding that the move would streamline the license application process.

"The Dutch government today published an updated license requirement regarding the export of immersion DUV semiconductor equipment. ASML believes this requirement will harmonize the approach for issuing export licenses," the company said in a statement. "Since this is a technical change, this announcement is not expected to have any impact on our financial outlook for 2024."

Immersion DUV lithographs marked a key advancement in the chip industry. Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, started using the tech in 2008 with its 40-nm node. This helped the Taiwanese chip titan quickly improve its production quality.

Such immersion DUV tools also have the potential to help top Chinese chipmaker Semiconductor Manufacturing International Corp. continue advancing its own chipmaking capabilities. From the U.S. government's point of view, shipments of such tools created loopholes for SMIC and Huawei to access cutting-edge chips, such as the 7-nm grade chips Huawei currently uses in its flagship phones and AI computing servers.

ASML is the market leader in making lithography machines for advanced chip manufacturing, while Japan's Canon and Nikon also provide the machines. No American companies make such equipment.

Lithography refers to projecting and printing circuit designs onto wafers. DUV lithography machines are essential for the production of the majority of chips used in most electronic devices, including memory chips and processors.

The announcement comes on the heels of the U.S. Commerce Department unveiling new export curbs on quantum computing, chipmaking tools and other advanced technologies. Washington said in its own release that it is confident "like-minded" countries will increase their cooperation in controlling exports of sensitive technologies.