Bloomberg reported that people familiar with the matter said that weeks before the ban on exports of high-end chip manufacturing equipment took effect, ASML Holding NV canceled some equipment shipments to China at the request of U.S. President Joe Biden’s administration. The Dutch manufacturer received permission to ship three top-of-the-line deep-UV lithography equipment to the Chinese company until new Dutch restrictions take full effect in January. However, U.S. officials contacted ASML and asked them to immediately halt scheduled shipments of some machines to Chinese customers, according to people familiar with the matter.
Biden is fighting the Chinese government's attempts to build its own advanced semiconductor industry, and the United States and its allies are blocking China's access to imported technology. According to Bloomberg News, China’s Huawei Technologies Co., Ltd. used advanced chips manufactured by ASML’s immersion lithography machine last year.
The above-mentioned people said that U.S. National Security Advisor Jake Sullivan called the Dutch government late last year about the matter. Dutch officials asked the United States to contact ASML directly to discuss the shipment of these equipment, known as immersion deep ultraviolet lithography machines.
Shipments of a limited number of machines were canceled after the U.S. request, these people said, but it was unclear how many units were involved, which can cost tens of millions of dollars each.
Spokespersons for the White House National Security Council and the Dutch Foreign Ministry declined to comment.
U.S. pressure on the Veldhoven-based company began in 2019, when President Donald Trump's administration pushed the Dutch government to ban sales of ASML's top-of-the-line extreme ultraviolet lithography equipment to China. ASML is the only company producing the technology, which is used to make the semiconductors needed for everything from smartphones to precision military equipment.
Last year, driven by the Biden administration, the Dutch government further tightened export controls to China, restricting exports of DUV machines, the company's second largest advanced product line, from January 1. Since then, China has been stepping up its stockpile of these equipment.
According to Chinese customs data, China's imports of photolithography machines surged more than fivefold between July and November, reaching a value of US$3.7 billion. China accounted for almost half of ASML's sales in the third quarter, compared with 24% in the previous quarter and 8% in the three months to March, as Chinese companies rushed to import ASML's machines before export controls took effect.
ASML's outgoing CEO Peter Wennink told investors in October that the new restrictions would impact as much as 15% of the company's sales in China.
Winnick has spoken out against the measures, warning that they could encourage China to develop competing technologies. "The more pressure you put on them, the more likely they are to redouble their efforts," he told Bloomberg News last year.