The United States urges the Netherlands not to sell DUV equipment used for semiconductor manufacturing to China

It is reported that the US government is urging the Dutch government to stop selling equipment to China by ASML, the world's largest manufacturer of semiconductor exposure equipment. Already, some of the state-of-the-art systems have been suspended, but if the Dutch government responds to this effort, the scope of the suspension will expand and Chinese chip makers are expected to be hit hard.

US Wants Dutch Supplier ASML to Stop Selling Chipmaking Gear to China --Bloomberg

Semiconductor exposure equipment is a device that plays an important role in the process of semiconductor manufacturing. The world's largest manufacturer is ASML, which is based in the Netherlands. In particular, ASML has almost monopolized the technology for 'extreme ultraviolet lithography (EUV) equipment'. However, exporting this EUV licensed technology from the Netherlands to China has already been banned from the United States.

This time, the United States is working to suspend the export of deep UV lithography (DUV) equipment to China. China's largest foundry, SMIC, plans to extend its contract with ASML until 2022, replacing non-importable EUV equipment with DUV equipment, according to a report by Business Korea in December 2021. thing. Initially, it was unclear and confusing about how DUV equipment was handled due to the tightening of regulations by the U.S. government, but later it was found that DUV equipment was out of regulation, and it was decided to increase the number of imports. is. 30% of ASML's sales come from China, most of which is from DUV equipment sold to SMIC.

Chinese Semiconductor Companies Expanding Acquisition of DUV Equipment --Businesskorea
http://www.businesskorea.co.kr/news/articleView.html?idxno=84798

It is not yet clear whether the Dutch government will accept the US government's consultation, and even if the consultation is accepted, it does not mean that Chinese companies will be able to obtain DUV equipment from other than ASML. However, in 2021, ASML sold 81 DUVs to Chinese companies, while Nikon sold 4 DUVs, which is far less.

In addition, most DRAM and 3D NAND memory production is done in China, and production without a Chinese manufacturing plant is expected to impact the global supply chain.