ASML, the Netherlands-based producer of the world’s most superior lithography methods (chip-making gear), has asserted that it’s succesful of fulfilling its contracts with Chinese clients earlier than the top of this yr, in accordance to Bloomberg, regardless of the Dutch authorities’s new export management measures for chip-manufacturing gear coming into impact on September 1. Under the brand new rules, Dutch firms want to apply for export licenses from Dutch customs upfront in the event that they intend to export sure high-end semiconductor-related gadgets exterior the EU. A spokesperson from ASML added that the corporate can’t acquire export licenses to export these merchandise to China in 2024.
Why it issues: ASML’s dedication to fulfilling its China orders up to the top of the yr will assist ease some of the stress on the nation’s chip sector, which has been the topic of a sequence of stringent export management measures on semiconductor-related gadgets from first the US and subsequently Europe and Japan. From January subsequent yr, the export ban on ASML’s superior DUV (deep ultraviolet) gear is predicted to have a far-reaching impression on China’s home semiconductor trade chain.
Details: On June 30, the Dutch authorities formally launched new semiconductor export controls, with the measures set to take impact on September 1, 2023. Prior to this date, ASML was permitted to submit export license purposes to the Dutch authorities.
- On August 31, ASML mentioned that the corporate owned licenses to ship restricted chip-making machines to China until the top of the yr, regardless of the brand new export restrictions coming into impact in September. Industry observers have due to this fact speculated that ASML had already utilized for export licenses upfront.
- ASML is the unique EUV (excessive ultraviolet) lithography provider for chip-making under 7nm, in accordance to a report from TMTpost. The firm’s most superior EUV merchandise have been already banned from being exported to China even earlier than the Dutch authorities’s new rules. Instead, ASML primarily exports DUV lithography for chip-making above 7nm. However, in 2024, the agency will discontinue the export of DUV gear to China since it’s unlikely that new licenses can be authorized by the Dutch authorities past the top of this yr.
- On July 19, ASML introduced its second-quarter monetary report for 2023. Sales to China accounted for twenty-four% of ASML’s complete income within the second quarter, representing a rise of 200% year-on-year, in accordance to the corporate’s monetary report.
- CEO Peter Wennink acknowledged on an earnings name that the brand new export management measures have been unlikely to have a big impression on the corporate’s income efficiency in 2023.
Context: At current, China’s import of lithography gear relies upon closely on the Netherlands. In response to new restrictions in 2024, China could improve its imports within the remaining 4 months of this yr. However, that is clearly not a long-term resolution.
- China’s lithography imports reached $3.96 billion in 2022, with the Netherlands accounting for 64.3% ($2.54 billion) of this complete, in accordance to information from China Customs. From January to July in 2023, lithography imports from the Netherlands amounted to $2.58 billion, marking a big improve of 64.8% year-on-year.
Jessie Wu is a tech reporter primarily based in Shanghai. She covers client electronics, semiconductor, and the gaming trade for TechNode. Connect along with her by way of e-mail: [email protected].
More by Jessie Wu
…. to be continued
Read the Original Article
Copyright for syndicated content material belongs to the linked Source : TechNode – https://technode.com/2023/09/04/asmls-export-of-chip-making-machines-to-china-valid-until-year-end/