US technology restrictions have prevented the sale of latest chip-making machines from ASML and Tokyo Electron to China. ASML’s latest EUV machines, for example, are required to produce 3nm chips and below. Due to these restrictions, Huawei and Chinese semiconductor companies can only produce 7nm chips, which are several generations behind.
This week, US Commerce Secretary Howard Lutnick reportedly raised concerns with ASML leadership over claims that the latest EUV machines may have reached China. ASML quickly denied the allegations, saying it “has never shipped EUV machines or components specifically designed for EUV to China.”
The Dutch Foreign Ministry also issued a statement saying all semiconductor equipment is subject to Dutch licenses and EU regulations. All equipment on the control list requires a license and its enforcement is strict.
Huawei previously reported offering TSMC employees triple their salaries to build EUV systems made in China. The Chinese government has also provided billions of dollars in funding to improve the capabilities of local chipmakers so that the latest chips can be produced without restrictions.
In December last year, China is believed to have built a prototype of a domestically made EUV machine in a high-security laboratory in Shenzhen with the help of former ASML engineers. It is likely that the EUV machine Lutnick is referring to is a Chinese-made machine, not one smuggled in from the Netherlands.
