The USA is conducting major campaigns to prevent China from monopolizing technology production. According to recent allegations, US politicians want to prevent ASML, Europe’s largest chip hardware manufacturer, from selling to its Chinese partners. As you can imagine, this decision will reduce chip production and increase prices.
US to ban China from buying hardware from ASML
The semiconductor chip crisis, which has been going on for years, seems to flare up with the new political obstruction of the USA. The Senate, which currently prevents many US companies from buying parts or establishing partnerships from China, now wants to block the agreements of the Dutch ASML company.
The latest report by Bloomberg showed that the world’s largest manufacturer of lithography tools (a equipment used in chip printing) is on the target. The US had previously blocked ASML from selling its extreme ultraviolet (EUV) lithography equipment to Chinese firms. Now it plans to stop the sale of deep ultraviolet (DUV) lithography instruments.
Equipment called DUV is used in many segments of technology, from computers to servers, from mobile electronics to autonomous vehicles and robots. In other words, ASML’s inability to sell to China indicates that a new semiconductor crisis is at hand.
US politicians, who are planning to break ASML’s agreements with Chinese manufacturers, have already started talks with the Dutch government. According to this; Hua Hong, Semiconductor Manufacturing International Co. Agreements with manufacturers such as (SMIC) and YMTC may be cancelled.
In addition, it is unclear for now whether the agreements with global chip manufacturers (TSMC, Samsung and SK Hynix) will continue. It is said that Chinese manufacturers can also buy DUV equipment from Canon and Nikon, but it should be noted that the largest manufacturer is ASML.
A possible blocking decision by officials from the Netherlands and ASML could expand the chip crisis around the world. While companies such as Samsung and Intel are increasing their investments, the future of technology parts is uncertain.
What do you think about the ban decision between the USA and ASML? You can share your ideas in the comments section and on the SDN Forum.
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