Chinese attempts to bolster domestic chip manufacturing by relying on older machines were dealt a blow today after the Dutch government aligned itself with the US and expanded oversight over additional machines made by ASML. ASML's latest chip manufacturing machines that use ultraviolet light to print circuits and are called EUV scanners have already been restricted from being sold to China by the Netherlands and the US.
However, some older machines had seen only American restrictions, which raised questions of Dutch sovereignty due to the fact that a foreign government was exercising influence over products made in the Netherlands.
Dutch ASML Machine Ban Comes After China Imports Record Chip Manufacturing Equipment In 2024
The latest move by the Dutch government comes after China spent a record $26 billion on chip manufacturing equipment through July this year. While US and Dutch sanctions on EUV scanners has effectively kneecapped the Chinese ability to manufacture leading edge chips through process technologies such as 3-nanometer and 5-nanometer, older DUV scanners have allowed Chinese firms like SMIC to make 7-nanometer chips.
Dutch Trade Minister Reinette Klever announced the decision today, sharing that "due to technological developments there are more safety risks in the export of these specific production machines." The machines in question are ASML's TWINSCAN NXT:1980Di and TWINSCAN NXT:1970Di tools, confirmed the company in a statement following the minister's announcement.
The 1980Di, in particular, focuses on multi patterning. ASML's product brief for the scanner on its website notes that the machine "addresses multiple patterning requirements and thus provides our customers with a cost-effective solution for advanced nodes."
With the addition of the 1980i DUV systems to the Dutch government's export control license requirement list, ASML's first tier of the DUV portfolio is completely covered by licensing requirements. The 1980i is the lowest end of the DUV scanners, which are called immersion machines. These are the most widely used scanners in the industry and are capable of producing more than 6,000 silicon wafers daily. The machines can also be upgraded to next generation EUV scanners through kits, and after today's announcement, ASML will have to request the Dutch government for a license to export the machines instead of asking the US government.
The new rules come into effect tomorrow, shared ASML, and added that as it already had to seek US government approval for the machines' exports, it will face minimal financial impact from the Dutch sanctions.
While EUV machines introduce a host of new complexities to the semiconductor fabrication process, they also reduce complexity by allowing chip makers to use finer beams of light to print circuits on silicon. Similar results can be achieved via multi patterning through the older DUV machines. The latest set of rules appears to target China's ability at this workaround, which often also comes at the cost of lower yield and product quality.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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