ASML Cancels DUV Shipments To China On Request Of The U.S., Putting A Dent In The Region’s Quest For Self-Sufficiency

wccftech.com:

In yet another blow to China as it attempts to maintain a path towards self-reliance, Dutch-based lithography systems manufacturer ASML has revoked shipments of some of its DUV machines thanks to a request brought forward by the Biden administration. The export ban for such equipment was supposed to come into effect after a few weeks, which would have given China a little breathing room to procure sufficient machinery to continue mass producing chips for various applications, but the U.S. had other plans.

Speaking with Reuters, ASML states that ‘a license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023 has recently been partially revoked by the Dutch government, impacting a small number of customers in China.’ Fortunately for the manufacturer, ASML states that the latest request for export control restrictions is not expected to have a negative impact on its financial outlook for 2023. However, recent data shows that China was slowly becoming the company’s biggest market.

After South Korea and Taiwan, China was ASML’s 3rd-biggest customer, but in the third quarter of 2023, the region became its largest, accounting for 46 percent of total sales. Assuming China continued to ramp up orders, that percentage would climb up, and given the volatile global relations, it was in the country’s best interest to pursue the procurement of specialized DUV equipment.

SMIC, China’s biggest semiconductor manufacturer, proved with the Kirin 9000S that it might be behind the U.S. in chip making, but it is not reliant on its resources. Both Huawei and SMIC also secretly announced a 5nm chipset called the Kirin 9006C, so it is possible that introducing an export ban early was a reaction by the U.S. to prevent China from