Dutch semiconductor manufacturer ASML is facing a ban from shipping to China, following licence export changes after initial reports suggested the company faced pressure from the US.
In its statement ASML clarified that shipments of its NXT:2050i and NXT:2100i lithography systems were affected after the Dutch government partially revoked ASML’s export license.
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ASML also stated that it was receiving clarification from the US government on updated trade controls surrounding sensitive technology such as lithography systems.
US Secretary of Commerce Gina Raimondo announced the updated legislation to reporters on 17 October 2023 and stated that they were aimed at protecting US national security without interfering with China’s tech industry.
Lithography systems are used in the manufacturing of chips necessary for AI and is considered one of the more expensive parts of the semiconductor manufacturing process.
ASML are leaders in this field and supply this equipment globally. ASML has however been banned in exporting to China by the US and, according to CNBC’s report, has not yet exported a single EUV machine to the country.
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By GlobalDataDespite the current block, ASML stated that it does not expect its final financial outlook for 2023 to be negatively impacted and reaffirmed its commitment to upholding global trade legislation.
In its executive briefing on AI, research analyst company GlobalData explain that AI chips have been significantly affected by geopolitical tensions between the US and China as both countries have ambitions to become a leader in AI.
GlobalData reported in its briefing that the global semiconductor industry is now worth over $600bn, having achieved a CAGR of 8.3% between 2017 and 2022.
The Asia Pacific region accounts for the majority of this market, earning a combined revenue of $370bn in 2022 whilst the Americas only earned around $141bn that same year.
