U.S. and Netherlands Tighten Restrictions on Chipmaking Equipment Sales to China, Impacting ALD and ASM International

The United States and the Netherlands are set to impose stricter restrictions on the sale of chipmaking equipment to China, aiming to prevent the use of foreign technology for military strengthening. In their efforts to curb China's access to advanced semiconductor technology, the Dutch government plans to restrict equipment from ASML, the leading chip equipment maker in the Netherlands, while the U.S. plans to further withhold Dutch equipment from specific Chinese fabs. These measures will impact atomic layer deposition (ALD) firm ASM International as well.

Besides ASM and Lithography, ASM International and ALD is of national interest to The Netherlands. During the recent Royal State Visit of King Willem-Alexander and Queen Máxima of the Netherlands to imec, ASM, a long-standing partner of imec, was in attendance. With over 30 years of partnership, ASM has made significant investments in research and development and maintains a substantial on-site team at imec known in the industry as ASM B or ASM Belgium. During the visit, ASM had the opportunity to highlight its role in the semiconductor ecosystem of both the Netherlands and Belgium, emphasizing how this collaboration connects Europe to advanced semiconductor manufacturing activities on a global scale. (Source: ASM LinkedIn)

ASML, Europe's largest chip equipment company, dominates in lithography, a crucial step in the chip manufacturing process. The Dutch government intends to announce new regulations, including a licensing requirement, for ASML's deep ultraviolet (DUV) semiconductor equipment. ASML's more sophisticated extreme ultraviolet (EUV) lithography machines are already restricted and have never been shipped to China. The U.S. is expected to identify specific Chinese facilities, possibly including those operated by SMIC, China's largest chipmaker, in a new rule that restricts foreign equipment containing any U.S. parts. ASM International, an ALD firm, is also likely to be impacted by the new Dutch regulations.

The U.S. and Dutch measures aim to prevent China from gaining access to advanced chipmaking technology that could be used for military purposes. These actions reflect the ongoing tensions between the U.S. and China regarding national security concerns and technological competition. While the exact details and timing of the restrictions may change, the increasing limitations on chipmaking equipment sales are expected to have significant implications for the global semiconductor industry and the supply chain dynamics in the coming months.

Sources:

US, Dutch set to hit China's chipmakers with one-two punch | Daily Mail Online

State visit to Belgium – programme | News item | Royal House of the Netherlands (royal-house.nl)