Dutch firm ASML is the only company in the world that makes Extreme Ultraviolet (EUV) Lithography machines that cost hundreds of millions of dollars each. These machines allow complex circuitry patterns to be placed on silicon wafers using lines thinner than human hair. The latest version of the machine, the High-NA EUV, allows chipmakers to place even more complex circuitry patterns on the wafers to help produce more advanced chipsets.
ASML still ships Deep Ultraviolet Machines to China. | Image credit-ASML
“By banning the export of EUV, China will lag 10 to 15 years behind the West.”-Christophe Fouquet, ASML CEO
Huawei and SMIC are looking at developing their own lithography tools hoping to be able to eventually produce chips using the same process node as TSMC and Samsung Foundry. But this could take 10-15 years; by the time China does figure out how to build EUV machines, TSMC, Samsung Foundry, and other foundries in the West will be using later-generation EUV machines capable of developing much more advanced chips.
Chinese firms are still able to buy DUV machines from ASML and have then serviced by the Dutch company. The U.S. is trying to get ASML to stop repairs of DUV machines in China but the company has a solid reason to continue with the repairs. If ASML leaves DUV repairs to SMIC and other Chinese firms to handle, China could learn sensitive information about these machines helping Chinese foundries and other tech firms in the country to build knockoff DUV machines.
ASML still does brisk business with China. Thus, allowing the Chinese to service the DUV machines they own, helping them build knockoffs of these expensive tools, is not something that ASML would like to see happen.
