The arrangement, according to Bloomberg, will cover “at least” part of ASML’s immersion lithography equipment. As of last year, ASML was the only manufacturer of the extreme ultraviolet lithography (EUV) tools required by chipmakers to create the 5nm and 3nm semiconductors that power today’s smartphones and computers. Cutting China off from ASML’s goods is part of the Biden administration’s strategy to halt the country’s homegrown chip sector. Chinese state media announced this summer that SMIC, China’s top semiconductor producer, had commenced volume production of 14nm chips and had successfully begun producing 7nm silicon without access to foreign chip-making equipment. SMIC is working on 5nm semiconductors, according to China, although it’s unclear how the business would do it without access to EUV equipment.
