"ASML, Block Exports to China" US Launches Pressure Campaign on the Netherlands

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Pressure from the United States on ASML, the Dutch semiconductor equipment company known as the 'super subordinate' in the semiconductor industry, is intensifying. Following the Biden administration's announcement of semiconductor export control measures targeting China earlier last month, the pressure appears to be aimed at preventing the transfer of other semiconductor equipment, beyond the already banned extreme ultraviolet (EUV) lithography machines, to China.

On the 2nd (local time), Bloomberg News reported, citing multiple sources, that later this month, Tarun Chhabra, Senior Director for Technology and National Security at the U.S. National Security Council (NSC), and Alan Estevez, U.S. Deputy Secretary of Commerce, are scheduled to travel to the Netherlands for talks with the local government. According to the report, both sides will discuss the scope of export restrictions on ASML's semiconductor equipment to China, with the U.S. expected to push for an expansion of these restrictions.

Bloomberg predicted, "Discussions will take place, but no agreement is expected." The meeting is also expected to cover other issues related to the technology partnership between the U.S. and the Netherlands, in addition to semiconductor equipment export matters, Bloomberg added.

The U.S. is reportedly requesting the Dutch government and ASML not only to restrict exports of the essential EUV lithography machines for advanced semiconductor processes but also to ban exports of the older generation deep ultraviolet (DUV) lithography equipment to China. There were reports earlier this year that U.S. officials raised this issue during a visit to the Netherlands.

DUV equipment uses light to etch electronic circuits onto wafers and is considered an older version of the advanced EUV equipment. In recent years, as China has shifted its focus from competing in advanced processes to developing older process technologies, Chinese companies have actively purchased DUV equipment, prompting the U.S. to intervene. However, the Netherlands and the European Union (EU) are reportedly opposed to this.

Bloomberg also reported that the U.S. government believes the effectiveness of the export controls announced earlier last month will weaken over time if allied countries do not participate. While U.S. semiconductor manufacturers such as Applied Materials, Lam Research, and KLA are expected to see a decline in China-related sales due to these measures, ASML is anticipated to experience only a 'limited' impact.

This content was produced with the assistance of AI translation services.