US ban targets ASML after Huawei’s chip advance

If Chinese buyers want to use deep ultraviolet ( DUV ) lithography equipment to produce high-end semiconductors rather than mid-level ones, ASML, the largest manufacturer of chip-making equipment in the world, will be prohibited from shipping it to them. & nbsp,

According to ASML Chief Executive Peter Wennick, the United States’ new export rule then allows for restrictions on the NXT: 1980Di tool, which is not subject to French export licensing regulations. The majority of other Chinese device manufacturers can continue to buy the DUV tool, he continued, adding that only a small number of Chinese factories may be impacted by the new rule. & nbsp,

After China’s Semiconductor Manufacturing International Corp( SMIC ) allegedly produced 7nm chips for Huawei using ASML DUV lithography and its own N 2 processing technology, the Netherlands government imposed the export ban. The Kirin 9000s device made its debut in Huawei’s Mate60 Pro smartphone in late August.

The NXT: 1980Di was intended to produce 38nm cards, but it can also offer more than 90 % when exposed to numerous risks. On the company’s website, ASML describes it as” a high – productivity, dual-stage immersion lithography tool.”

After the US announced new sanctions against Chinese chip manufacturers on Tuesday, ASML’s Nasdaq-listed shares dropped 4.17 % on October 18. & nbsp,

Although the US curbs may reduce ASML’s revenue to China by 10 to 15 %, Wennick predicted that require from Chinese device manufacturers would be solid. He claimed that in the third quarter, 46 % of ASML’s total sales were made up of supplies to China.

He said,” I don’t think we’ll see a peak this year, but I do believe there will be an enormous amount of demand for mature technology coming out of China.”

various devices

On June 30, the French authorities announced that ASML would need to submit an export license application for the shipment of its DUV printing techniques, including the NXT: 2000i and later soaking techniques. & nbsp,

As a result, Chinese device manufacturers may still be able to purchase NXT: 1980Di, an older model. The trade rule’s productive meeting was initially set for September 1 but was later moved to the conclusion of this year. & nbsp,

But after Huawei unveiled its Mate60 Pro on August 29, fresh disputes started to surface.

On October 4, US Commerce Secretary Gina Raimondo declared that studies of Huawei’s device find were” very disturbing” and that her office needed more resources and tools to enforce the ban and close any gaps.

Finally, ASML was told to stop sending NXT: 1980Di to Chinese factories that planned to use it to produce high-end cards. & nbsp,

NXT: 1980Di chip-making application from ASML. ASML picture

Although its output range may be constrained, some analysts predicted that the blacklisted SMIC and Huawei could potentially still supply NXT: 1980Di from the secondary marketplace to produce 7nm chips.

A Shanghai-based critic using the pen name Zhu Ting writes in an article that” printing is a pain point of China’s chip supply chain because it contains superior visual and higher precision parts that China may provide itself.” ” There is a long way to go before China is fully self-supply its chip-making technology.”

But, Zhu claimed that in anticipation of additional US restrictions, device manufacturers like SMIC and Huahong Grace Semiconductor Manufacturing Corp. have taken the initiative to order local manufacturers in recent months.

Despite not producing printing, she claims that regional providers like Advanced Micro-Fabrication Equipment Inc. and Naura Technology Group Co Ltd have benefited from this pattern.

E – sporting enthusiasts

Advanced artificial intelligence ( AI ) chip exports are also prohibited, and 13 Chinese AI chip design firms and distributors have been sanctioned as part of the latest round of US export restrictions against China’s chip industry.

As their AI chips are allegedly used to create” weapons of mass destruction, advanced weapons systems, and high-tech surveillance applications that create natural security concerns ,” the US Commerce Department announced that it will add Beijing Biren Technology, Moore Thread Intelligent Technology and their related firms to its” Entity List.”

Moore Thread and Biren both stated that they vehemently disagreed with the US choice.

In a stock exchange processing on Tuesday, US chipmaker Nvidia announced that it would no longer be able to ship A800, H800s, L40S, and RTX 4090 bits to China. Its DGX and HGX techniques will also be covered by the new regulations, which may take effect in 30 days.

According to media reports, the new US export restrictions may even prevent AMD from selling the Instinct MI300 and Intel’s Habana Gaudi 2.

The US limits does encourage foreign buyers to look elsewhere, according to the Semiconductor Industry Association, which represents US device manufacturers.

According to a Financial Times report from August 8, Chinese tech behemoths Baidu, Alibaba, and Tencent just ordered A800 bits from Nvidia valued at US$ 5 billion. & nbsp,

While the trade restrictions on the A800 and H800 chips was to be expected, China’s e-sports fans were shocked to learn that the sale of RTX 4090, one of their favorite graphics cards, was also prohibited. & nbsp,

Some retailers set their RTX4090 stock prices on Wednesday at 50, 000 renminbi($ 6, 837 ) each, down from the official estimate of about 13, 000.

Study: US to tighten its grip on China’s entry to Intelligence chips

At & nbsp, @ jeffpao3 is Jeff Pao’s Twitter account.