The Netherlands will impose more restrictions on ASML’s operations with China, according to Bloomberg. The company is expected to face limitations on its ability to provide maintenance for equipment already installed in the Asian country. As a result, Chinese semiconductor manufacturers will suffer especially in the most advanced production processes, such as 7nm and 5nm lithography.
The Dutch decision comes after strong pressure from the United States for its allies to help in its siege against China. As Tom’s Hardware explains, the land of Uncle Sam even threatened to appeal to a ruling called the Foreign Direct Product Rule (FDPR). This is a resource that allows the US to prevent the export of products from other countries if they use any piece of American technology.
ASML is one of the largest technology companies in the Netherlands, supplying DUV and EUV lithography equipment to several countries. The company’s home country had already banned the export of machines such as the Twinscan NXT:2000i, 2050i and 2100i, and now it will not even be able to service those already sold to China.
One of the main affected companies is expected to be China’s largest semiconductor manufacturer, SMIC. Unofficial information indicates that the company already uses the Twinscan NXT:2000i and even more advanced models in the manufacture of its 7nm chips for Huawei.
ASML will be missed mainly by SMIC
Without proper maintenance, ASML’s machines are expected to become inoperable as soon as 2025. Certain operating licenses expire at the end of this year, which is believed to have been taken into account in the Netherlands’ decision to restrict maintenance at this time.
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The Dutch giant’s equipment is used in more advanced processes, so SMIC is likely to be greatly impacted by the decision. Especially as it prepares to manufacture new AI chips for Huawei, the Ascend 910C. Not to mention SoCs for mobile devices.
In absolute numbers, however, most Chinese chipmakers are unlikely to feel the pinch any longer. According to Tom’s Hardware, most of these companies work with older semiconductors that are not a concern in the US.
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Source: https://www.adrenaline.com.br/hardware/holanda-cede-aos-eua-e-vai-impor-mais-restricoes-para-a-asml-na-china/
