Tensions between the US and China over advanced technology escalated this week as Dutch firm ASML canceled some planned shipments of its sophisticated chip-making equipment to China.
ASML, a leading global supplier of the ultra-precise lithography machines used to manufacture computer chips, made the tough decision after reported interference by the American government.
Washington has been aggressively working to curb China’s progress in semiconductors, a strategically and economically vital industry. ASML’s cutting-edge technology is highly coveted by chipmakers around the world. The Dutch company is one of only a handful globally that can produce extreme ultraviolet lithography systems – futuristic machines that harness powerful lasers to etch tiny patterns onto silicon wafers used to make chips. This enables chipmakers to churn out smaller, faster and more energy-efficient semiconductors for everything from smartphones to artificial intelligence systems.
ASML’s elite client list includes chip behemoths like Samsung, Intel and Taiwan’s TSMC, key suppliers to tech titans including Apple, Huawei and others. Concerns emerged after reports that Chinese firm SMIC tapped ASML’s technology to fabricate Huawei’s latest Kirin 9000S processor.
The American export ban imposed last October prohibits non-US firms like ASML from shipping certain semiconductor chips and lithography machines containing US technology to China without a special license. Washington has been strong-arming allies to join its restrictions on strategic tech sales to China, citing Beijing’s military modernization and human rights abuses.
In July, the Dutch government reluctantly agreed to limit ASML’s exports of its advanced deep ultraviolet lithography systems to China. This week’s move saw the US intervene to halt some planned shipments of ASML’s cutting-edge extreme ultraviolet machines.
