Wed, June 19, 2024

ASML Restricts the Export of Chip Manufacturing Tools

FTX, robinhood, zksync

The United States and the Netherlands are preparing new restrictions on the sale of chip-making equipment. The two countries are continuing their efforts to prevent technology from being used for military purposes in China.

According to Reuters, ASML Holding, the leading Dutch supplier of semiconductor production equipment, will further restrict the export of its tools to China. Additionally, the US plans to block more Dutch equipment from reaching Chinese factories.

ASML, the dominant player in lithography, a crucial stage in chip production, holds the position of Europe’s largest chip company.

The Dutch government, ASML, and the US Department of Commerce, responsible for export controls, declined to comment on the matter. Last year, the US imposed export restrictions on chip-making tools shipped from the US to China.

American companies Lam Research and Applied Materials face a limited supply of tools due to national security concerns. The US also requires manufacturers from other countries to implement similar restrictions.

Japanese chip equipment companies Nikon Corp and Tokyo Electron Ltd. have introduced regulations to restrict the export of 23 types of semiconductor manufacturing equipment. These restrictions will take effect on July 23.

The Chinese embassy in Washington criticized the move, stating that the US “deliberately blocked and hindered Chinese companies, forced industrial relocation, and insisted on separation.” Beijing expressed its intention to monitor the situation and protect its interests closely.

US Considers Restricting AI Chip Exports to China

The US administration is contemplating additional restrictions on exporting artificial intelligence (AI) chips to China amid concerns about the technology’s potential in the hands of American rivals.

Unnamed sources cited by the Wall Street Journal indicate that Washington plans to impose further limitations on the supply of American equipment and semiconductors for AI to China. There is also a possibility of prohibiting the delivery of cloud technologies used for AI.

These plans stem from US authorities’ concerns that equipment from manufacturers like Nvidia could be utilized for military purposes. The US Department of Commerce, Nvidia, and AMD have not yet commented on the potential introduction of new restrictions.

The market responded to this news, with Nvidia’s shares falling by 4.2% and AMD’s shares declining by 3.4% in over-the-counter trading. Intel also saw a 1.2% drop in its share value.

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