ASML, a vital player in global semiconductor manufacturing, canceled the exportation of high-tech chip-making machines to China due to revoked Dutch export licenses.
Known for extreme ultraviolet lithography systems (EUVs), ASML’s technology is crucial for major chip producers like Samsung and Intel and is used in various devices from smartphones to military equipment.
Several companies in China are interested in the machines to help develop their own chip-making capabilities to combat the US’s ban on exports of certain types of high-end chips.
ASML’s cancellation was due, in part, to pressure from the Biden administration to force the Chinese to develop their own technology.
In 2022, the Biden administration imposed stringent restrictions on semiconductor exports to China, significantly impacting the sale of advanced semiconductors, including AI chips, to entities within China.
These latest actions align with US efforts to influence allies to limit technology associated with semiconductor manufacturing that could contribute to China’s semiconductor advancements.
The administration’s goal is to curb China’s semiconductor advancements and technological capabilities, citing concerns about national security and preventing the use of US-made chips and equipment to bolster China’s military strength.
Previous Dutch restrictions on ASML’s EUV lithography machines also followed US pressure and were officially implemented in July last year.
A Chinese ministry spokesperson urged the Netherlands to act fairly and protect mutual interests amid US-influenced actions, calling it “hegemonic and bullying behavior.”
The cancelation is certain to raise tensions between the US and China further.
An ASML statement said that the company “has obtained further clarification of the scope and impact of the US export control regulations.”
ASML anticipates no significant financial effect from the license revocation in 2023.