The U.S. government told Dutch semiconductor equipment manufacturer ASML not to sell semiconductor equipment to Chinese companies.
ASML is the only company in the world that produces ultraviolet (EUV) exposure equipment necessary for semiconductor micro-processes. ASML reported that the U.S. government pressured the Dutch government to stop even selling deep ultraviolet (DUV) exposure equipment to China. Although DUV is old, it is still widely used in automobiles, telephones, computers, and robots.
Peter Benink, CEO of ASML, also participated in the semiconductor exhibition “Semi-Con Korea” held online in February. U.S. Vice Commerce Secretary Don Graves said he recently talked with CEO Peter Beninck at ASML headquarters in the Netherlands about exports to China.The Netherlands has yet to accept the U.S. proposal. China is the third-largest trading partner with the Netherlands after Germany and Belgium. If the Netherlands agrees with the U.S., the types of semiconductor production equipment prohibited from selling to China will increase significantly, which could seriously hurt Chinese semiconductor companies such as Zhongxin Guoji (SMIC) and HuaHong Semiconductor. ASML does not export EUV exposure equipment to China.
The U.S. government has pressured the Dutch government to prevent ASML from selling EUV exposure equipment exclusively to China.The U.S. government seems to be trying to thwart and pressure Beijing’s plan to foster the semiconductor industry. At the same time, the U.S. is pushing to cut import tariffs on China’s consumer goods and household goods.It seems to be trying to solve consumers’ grievances with the current high prices in the United States.It makes me think about the attitude of the United States to release what is needed and to be vigilant. Currently, the U.S. and China are sharply divided economically and militarily, which is a series of tensions.In particular, China is also putting pressure on Spanish participants in the G7 to impose sanctions.
TED PARK
ASIA JOURNAL
