ASML Halts Chip-Making Machine Shipment To China Over US Request

(RTTNews) - Dutch semiconductor tools manufacturer ASML Holding N.V. (ASML), has stated that it has been prevented by the Dutch government from exporting chip-making machines to China, following a request from the Biden administration.

ASML reported that the state has partially revoked its license for the shipment of its NXT:2050i and NXT:2100i immersion deep ultraviolet (DUV) lithography systems, which are used in the production of slightly less advanced chips.

ASML is one of the only manufacturers to develop extreme ultraviolet lithography systems (EUVs), which use lasers to create the circuits for chips. These advanced chips are used in smartphones and military equipment.

The Dutch government's move to revoke the license comes after the US government decision to tighten its export rules for advanced semiconductors and chip-making tools to China. The ban aims to restrict China's capability to expand its semiconductor production and knowledge.

The U.S. initiated export curbs in October, prohibiting non-U.S. companies from exporting semiconductor chips and lithography machines containing U.S.-made parts and technology. The U.S. also urged its allies to adopt similar measures.

Under pressure from the U.S., the Dutch government had agreed to impose restrictions on the sales of ASML's DUV machines in July of the previous year. The ban was officially announced on Monday.

Chinese Foreign Ministry Spokesman Wang Wenbin condemned the US restrictions as "hegemonic and bullying behavior". It urged Dutch government to uphold market principles and honor its contractual obligations, as the company was about to send three advanced chip-making machines to China.