ASML to Control Export of Some DUV Equipment to China Starting as Early as the 30th

No Specific Mention of China or ASML Expected
"Below the Level of US Export Control Measures"

The Dutch government is expected to announce measures that could restrict the export of deep ultraviolet (DUV) lithography equipment from its domestic semiconductor equipment company ASML to China, raising alert in the related industry. After the Dutch government announced in January this year that it would join the Biden administration's export control measures on semiconductor equipment to China, direct actions are now being implemented, raising concerns that companies with a high market share in China may face impacts going forward.

[Image source=Reuters Yonhap News]

On the 22nd (local time), Bloomberg News, citing sources, reported that the Dutch government may announce measures to control the export of some of ASML's DUV lithography equipment as early as the 30th of this month or during the first week of next month. The Dutch government had agreed in principle last January, along with Japan, to join the U.S. export control measures on semiconductor equipment to China and had stated it would implement measures before this summer.

The Dutch government's announcement does not specifically mention China or ASML, but Bloomberg reported that the control measures are designed to effectively prevent the export of three types of DUV equipment produced by ASML to China. DUV equipment is used to etch electronic circuits onto wafers using light.

As a result, ASML will need to obtain permission from the Dutch government each time it exports these products to China, and since permission is unlikely to be granted, the effect will be a practical restriction on exports. Bloomberg also noted, "The Netherlands has made this measure available for use by other European Union (EU) member states."

If the Dutch government announces these measures, ASML will face restrictions on exporting not only its extreme ultraviolet (EUV) lithography equipment, which is considered the most important equipment for advanced semiconductor production, but also the older version, DUV equipment, to China. Due to export restrictions imposed by the U.S. and Dutch governments several years ago, China has found it difficult to obtain EUV equipment and has shifted its focus from advanced process competition to developing older processes, actively purchasing DUV equipment. The U.S. effort to prevent China from dominating even older processes used in automotive parts and other applications appears to be linked to the export controls on ASML.

Currently, the Dutch government and ASML are aligning with the U.S. export controls on China, but it remains uncertain whether they can completely give up the huge Chinese market in the future. China is a major player in the semiconductor equipment market, and the trade volume between the Netherlands and China is large, making it difficult to unconditionally side with the U.S. and sacrifice their own interests.

Earlier, Peter Wennink, CEO of ASML, also expressed concerns, saying, "The U.S. export restrictions on semiconductors to China could ultimately pressure China to develop its own technology," and "The more that happens, the more efforts will be expanded to build equipment comparable to ASML's."

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