The global semiconductor industry is a complex and competitive landscape, with China striving to achieve self-reliance. A key player in this industry is ASML, a Dutch multinational corporation known for its dominance in the production of photolithography machines. These machines are essential for etching electronic pathways onto silicon wafers, a crucial step in creating semiconductors. However, geopolitical tensions and trade restrictions have influenced the presence and use of ASML machines in China.
ASML’s Presence in China
ASML has a significant presence in China, with nearly 1,400 units of its equipment installed in the country. These machines are primarily less powerful Deep Ultraviolet (DUV) machines, as trade restrictions prevent ASML from selling their more advanced Extreme Ultraviolet (EUV) machines to China. Despite these restrictions, Chinese firms have been able to create powerful 5 nm chips using these DUV machines.
Trade Restrictions and Their Impact
In 2019, the Dutch government introduced restrictions to prevent ASML from selling their EUV machines to China. These restrictions were a response to international concerns about potential risks, such as the development of China’s military power and the enhancement of AI. More recently, the Dutch government revoked some export licenses, impacting the shipment of certain lithography systems to China.
Despite these restrictions, ASML continues to be a significant player in the Chinese market. In fact, China was ASML’s largest market in the third quarter of 2023, accounting for 46% of the company’s sales.
China’s Response and Future Prospects
In response to these restrictions, China has been working on developing its own advanced semiconductor technology. Chinese firms and institutions, such as Shanghai Micro Electronics Equipment, Tsinghua University, Nanjing University, the Chinese Academy of Sciences, and the firm Specreation, have all filed patents for EUV technology. This suggests that China is making strides towards semiconductor self-reliance.
Furthermore, ASML is looking to speed up the delivery of mature-node lithography machines to meet strong demand in China. The company has also expressed its commitment to expanding its efforts in repair, service, and product development in China.
FAQ
What is ASML?
ASML is a Dutch multinational corporation that is the world’s largest producer of photolithography machines. These machines are used to etch electronic pathways onto silicon wafers, a crucial step in creating semiconductors.
What are DUV and EUV machines?
DUV (Deep Ultraviolet) and EUV (Extreme Ultraviolet) machines are types of photolithography machines used in the production of semiconductors. EUV machines are more advanced and can create smaller, more powerful chips than DUV machines.
Why can’t ASML sell their EUV machines to China?
In 2019, the Dutch government introduced restrictions to prevent ASML from selling their EUV machines to China. These restrictions were a response to international concerns about potential risks, such as the development of China’s military power and the enhancement of AI.
How is China responding to these restrictions?
China is working on developing its own advanced semiconductor technology. Several Chinese firms and institutions have filed patents for EUV technology, suggesting that China is making strides towards semiconductor self-reliance.
What is the future of ASML in China?
Despite trade restrictions, ASML continues to be a significant player in the Chinese market. The company is looking to speed up the delivery of mature-node lithography machines to meet strong demand in China and is committed to expanding its efforts in repair, service, and product development in the country.
