So, basically China can secure DUV lithography machine from ASML, as well as domestic DUV lithography machine from SMEE and etc. With SMIC breakthrough, this prove that fabricating 7 nm chip can be done with DUV machine, which should buy Chinese companies some time while waiting for breakthrough in domestic EUV lithography machine. In the short term, 5 nm chip probably won't have significant advantage over 7 nm chip as 7 nm over 28 nm chip.BTW, just before the ASML financial report on Oct 14, Chinese Academy of Science reportedly has made major breakthrough in lithography machine, according to Beijing-based veteran industry analyst, Xiang Ligang, which I'm not sure of exactly what yet.
ASML:Exporting DUV lithography machines from the Netherlands to China does not require a US license
By yqqlm
(Observer Network News) October 14, local time, the semiconductor giant, global lithography machine leading company ASML CFO Roger Dassen expressed his views on the issue of exporting lithography machines to China. He said that ASML can export DUV (deep ultraviolet) lithography machines from the Netherlands to China without a US license.
On the same day, ASML released its third quarter 2020 financial report, and Darson also accepted a video interview. When asked about the impact of the US semiconductor export ban on ASML’s business, Darson responded that they had noticed the US ban and also realized the impact of the ban on Chinese customers.
Subsequently, Dassen explained the issue of ASML’s lithography machine export. He said:”If you want to explain the impact of the US regulations on ASML, for Chinese customers, we can still directly The Netherlands exports DUV lithography machines to them without any export license.”
But he then added that if the relevant systems or parts are exported from the United States, the equipment still needs to be licensed by the United States.
Dassen said that ASML will do its best to continue to provide services and support for all customers.
According to the public earnings call recording, ASML CEO Peter Wennink also confirmed this at the meeting. Wernicke stated that under current US regulations, DUV lithography machines directly exported from the Netherlands to China will not be affected.
But Dasson and Wernicke both emphasized the export of DUV lithography machines, and did not mention more advanced EUV (extreme ultraviolet) lithography machines. Bloomberg also stressed in a report on the 14th that the DUV rules do not apply to EUV lithography machines. ASML must obtain a license to export EUV lithography machines to Chinese companies. However, the Dutch government has suspended the EUV lithography machine export license, and has not approved it until now.
“Although it is caught between China and the United States, ASML is still actively working”, Bloomberg reported.
According to the financial report released by ASML, ASML lithography machine net in the third quarter of 2020 Sales reached 3.1 billion euros, and the Chinese mainland market accounted for 21%. ASML’s total net sales in the third quarter reached approximately 4 billion euros and net income was nearly 1.1 billion euros. It is worth mentioning that EUV lithography machines account for a very high proportion of revenue, contributing 66%of lithography machine sales.
In May of this year, ASML and Wuxi High-tech Zone signed a strategic cooperation agreement to expand and upgrade the ASML lithography equipment technical service (Wuxi) base in Wuxi High-tech Zone. Prior to this, ASML has opened branches in Beijing, Shanghai, Shenzhen, Wuxi and other places to provide customers with services and consulting. Among them, Shenzhen is its largest software R&D center in Asia.
