Have you ever wondered how tens of billions of transistors can fit inside a small die? The discovery, production, and continued improvement of semiconductors is one of the most amazing achievements of man. And the lithography machines used to etch circuitry patterns on the silicon wafers that are cut into multiple dies are also incredible. There is but one company that manufactures extreme ultraviolet lithography (EUV) machines and that is a Dutch firm called ASML.
Dutch manufacturer ASML is still allowed to ship older lithography machines to China
S of ASML’s DUV machines are not allowed to be shipped to China
ASML has a backlog of $37 billion that needs to be shipped. These orders were placed in 2021 and 2022 and include some orders destined to be shipped to China. If the U.S. toughens its export restrictions, which was mentioned as a possibility in the wake of Huawei’s unveiling of the Mate 60 series powered by the Kirin 9000s 5G chipset, some or all of the orders headed to China could be canceled.
ASML is looking to expand its headcount in China
ASML’s Twinscan 2000 DUV series won’t be delivered in China starting January 1st. This machine can be used to help manufacture advanced 7nm and 5nm chips. Orders from China made up 46% of ASML’s Q3 revenue and Shen says that ASML will look to increase its repair, service, and product development in China while expanding its workforce in the country over the next two years.
