China vexed at expansion of ASML chip tool export controls, reveals ministry statement

When the Dutch government retook export controls over ASML's advanced immersion lithography tools back on Friday, ASML said that it expected no changes to its business, which meant no obvious change to sales of these tools to Chinese entities. Nevertheless, Chinese authorities have now taken the time to express their feelings toward the situation, and they are "dissatisfied," according to a Reuters report. 

"In recent years, in order to maintain its global hegemony, the United States has continued to ... coerce certain countries to tighten export control measures for semiconductors and (related) equipment," a statement by the Chinese government reads, as reported by Reuters. "China is resolutely opposed to this."  

The enforcement of the export rules by the Dutch government is generally a part of the U.S. government's plans to bring the export rules of allied countries in line with its own restrictions. The policy aims to limit China’s access to advanced chipmaking tools. 

The Netherlands on Friday announced it would require export licenses for ASML's Twinscan NXT:1970i and 1980i DUV immersion lithography systems. Albeit not the latest in the DUV range, these are immersion DUV tools with an argon fluoride (ArF) laser capable of 38nm resolution, designed for processing wafers with 7nm-class technologies, and even finer with multi-patterning. ASML once even acknowledged that these tools could enable China's SMIC to produce chips at 7nm, 5nm, or even 3nm nodes using a multi-patterning technique, though this process is inefficient and results in lower yields, making it economically challenging. 

Since these tools use U.S.-developed technology, the U.S. government required ASML to obtain an export license to ship them to China. Although the Dutch government now controls these exports, ASML does not expect a significant change in how licenses are handled, despite potential reviews. 

In response to the Dutch government’s decision, China's ministry urged the Netherlands not to misuse export controls, warning that this could jeopardize cooperation between Dutch and Chinese semiconductor companies, according to Reuters. China emphasized that such restrictions harm mutual interests. 

Defending the Dutch government's decision, Trade Minister Reinette Klever cited national security concerns. She stressed that the move was made to protect the Netherlands, echoing the rationale behind the U.S. push for tighter global controls on semiconductor exports to China.