American interference would no longer be limited to EUV scanners, but also DUV.
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A significant number of Chinese companies can no longer benefit from the services of smelters on advanced engraving nodes due to US sanctions. The most emblematic example is of course HiSilicon, a subsidiary of Huawei, deprived of its commercial relations with TSMC. In order to continue to undermine Chinese production and technological advancement, the Biden administration is reportedly working to ban the sale of ASML’s DUV scanners to companies in the country.
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Founded in 1984, ASML is a Dutch company. It is the leading supplier of photolithography machines for the semiconductor industry. Already, ASML cannot supply Chinese companies with EUV scanners (Extreme Ultra Violet); however, it can still ship DUV equipment. DUV scanners (Deep Ultra Violet) do not make it possible to achieve very sophisticated engraving finesse, but are used to produce the majority of electronic chips used in the world.
Component shortage will last until 2024 according to Pat Gelsinger
16% of ASML’s turnover in 2021
To get some orders of magnitude, know that ASML plans to ship around 300 scanners (55 EUV scanners and 240 DUV scanners) this year. The sale of DUV machines to Chinese foundries represented 16% of ASML’s turnover in 2021. The company’s leaders would therefore not see the American maneuvers very favorably. Furthermore, they rightly argue that other companies, such as Nikon or Canon, also market DUV machines. Thus, in the event that ASML should stop supplying Chinese companies, others will do so in its place. Still, the prohibition of the sale of DUV tools by ASML would be a serious blow to the Chinese industry; at least in the short term. Indeed, Chinese engineers are developing DUV scanners.
Furthermore, depriving Chinese factories of part of their supply of DUV scanners could have an impact on the entire sector. For example, the production of DRAM / 3D NAND memories is mainly carried out in China.
Source : Bloomberg
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