ASML will now require Dutch license to ship older chip machines to China

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By Maya Cantina

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Chinese attempts to bolster domestic chip manufacturing by relying on older machines took a hit today after the Dutch government sided with the U.S. and expanded oversight over additional machines made by ASML. ASML’s latest chipmaking 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 U.S.

However, some older machines had American-only restrictions, which raised questions about Dutch sovereignty due to a foreign government exerting influence over Dutch-made products.

Ban on Dutch ASML machines comes after China imports record chipmaking equipment in 2024

The Dutch government’s latest move comes after China passed a record $26 billion in chip manufacturing equipment until July this year. While US and Dutch sanctions on EUV scanners have effectively limited China’s ability to manufacture cutting-edge chips using process technologies such as 3nm and 5nm, older DUV scanners have allowed Chinese companies such as SMIC to manufacture 7nm chips.

Dutch Trade Minister Reinette Klever announced the decision today, sharing that “Due to technological developments, there are more security risks in exporting these specific production machines“The machines in question are ASML’s TWINSCAN NXT:1980Di and TWINSCAN NXT:1970Di tools,” the company confirmed in a statement following the minister’s announcement.

The 1980Di in particular focuses on multi-patterning. ASML’s product summary for the scanner on its website notes that the machine “addresses various standardization requirements and thus provides our customers with a cost-effective solution for advanced nodes.”

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With the addition of the DUV 1980i systems to the Dutch government’s export control licensing requirements list, the first tier of ASML’s DUV portfolio is now fully covered by licensing requirements. The 1980i is the lowest tier of DUV scanners, which are called immersion machines. These are the most widely used scanners in the industry and are capable of producing over 6,000 silicon wafers daily. The machines can also be upgraded to next-generation EUV scanners via kits, and following today’s announcement, ASML will have to apply to the Dutch government for a license to export the machines instead of the U.S. government.

The new rules come into effect tomorrow, ASML shared, adding that since it already had to seek US government approval for exports of the machines, it will face minimal financial impact from Dutch sanctions.

While EUV machines introduce a number of new complexities to the semiconductor manufacturing process, they also reduce complexity by allowing chipmakers to use thinner beams of light to print circuits on silicon. Similar results can be achieved through multipatterning using older DUV machines. The latest set of rules appears to target China’s ability to do this workaround, which often also comes at the cost of lower yield and product quality.

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