Dutch ASML under US pressure for China trade embargo

Dutch ASML under US pressure for China trade embargo

Trump imposed the first ban

ASML has been unable to sell its advanced chip machines, known as extreme ultraviolet machines, or EUV, to China for some time. Under former President Donald Trump, Washington has banned exports of high-tech technologies to China. EUV machines fall under the Wassenaar arrangement. This international agreement restricts the export of weapons to certain countries, but also modern technology that can be used for military purposes.

Now the US wants to ban chip-making machines with earlier technology from being exported to China. These are Deep Ultraviolet Machines or DUV. Although this is an old technology, most chips worldwide are still manufactured using these chip machines. International market leader ASML plays a key role in the initiation of production chains; For ‘pure’ ICT products, such as smartphones, PCs, servers and network equipment, and for ordinary products with more chips.

ASML: Nothing new

ASML is delayed To know Bloomberg That debate is not new. “No decisions have been made and we do not wish to speculate or respond to rumours,” a spokesperson said. CEO Wennink previously announced that ASML is against the export ban on DUV machines because it is already a fully developed technology.

ASML is a leading manufacturer of lithography machines that allow structures to be applied to chips. Deliveries to chip factories in China, owned by both Chinese and foreign chipmakers, accounted for less than 15 percent of ASML’s revenue in 2021. Meanwhile, the Dutch company has reached the limit of its own production, and now the worldwide demand for chips, and therefore chip manufacturing machines, is increasing.

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