Recently, there was news that the Dutch government intends to propose to restrict the export of immersion DUV lithography machines, which is expected to be announced before the summer. The news has sparked concern and concern in the semiconductor industry, as immersion DUV lithography machines are one of the most advanced semiconductor devices currently available and are critical for chipmakers.
What is an immersion DUV lithography machine? What does it do? Why is the Netherlands restricting its exports? These are all questions worth exploring.
The immersion DUV lithography machine is a lithography device that uses deep ultraviolet (DUV) as the light source, which can depict extremely fine patterns on the surface of the wafer, thereby realizing high-density integrated circuits. Compared to traditional dry DUV lithography machines, immersion DUV lithography machines add a layer of water between the wafer and projection lens to increase the refractive index and resolution, resulting in smaller linewidths and higher yields.
At present, only the Dutch company ASML in the world can produce immersion DUV lithography machines and has its patented technology. ASML is the world's largest semiconductor equipment supplier, and its customers include TSMC, Samsung, Intel and other world-renowned chip manufacturers. Among them, TSMC is one of ASML's largest customers and the only manufacturer that can mass-produce advanced process chips of 7nm and below.
So why is the Netherlands restricting the export of immersion DUV lithography machines? According to reports, this is related to the pressure exerted by the United States on China's semiconductor industry. The United States views China's semiconductor industry as a threat to its national security and is trying to prevent China from acquiring advanced technology and equipment. The United States has imposed export controls on SMIC, China's largest chip foundry, and has pressed its allies Japan and the Netherlands to do the same.
However, before that, the Netherlands did not completely submit to the will of the United States. Between the end of 2019 and the beginning of 2020, after repeated obstruction from the US government, the Dutch government finally approved ASML's export of an immersion DUV lithography machine to China, which is SMIC's key equipment for the production of 14nm chips1. However, this good news did not last long, and was broken by the news of the upcoming export restrictions on semiconductor equipment by the Dutch government2.
According to reports, the Dutch government intends to propose to restrict the export of immersion DUV lithography machines, which is expected to be announced before the summer. This means that ASML may not be able to export more immersion DUV lithography machines to China, including the NXT:2000i system3 for the production of advanced process chips at 7nm and below.
ASML quickly issued a statement saying that the new export controls do not cover all immersion lithography machines, but only apply to "state-of-the-art" systems. ASML interprets "state-of-the-art" as "TWINSCAN NXT: 2000i and beyond." In other words, in addition to NXT:2000i, other models of immersion DUV lithography machines can still be exported to China4.
So, what impact does this have on China's semiconductor industry? First of all, it should be clear that the current Chinese semiconductor industry has not yet reached the mass production level of advanced process chips of 7nm and below. SMIC, as the most technologically advanced chip foundry in mainland China, is capable of mass production of 14nm chips and is building projects for mature process chips of 28nm and above56. Therefore, in the short term, the new Dutch regulations will not have much impact on SMIC and other domestic manufacturers.
However, in the long run, if the new Dutch regulations are really implemented and continue, it will be a huge challenge to China's semiconductor industry. Because if you want to achieve the mass production of advanced process chips of 7nm and below, you must have NXT: 2000i or higher advanced lithography machines. At present, only ASML can produce these lithography machines, and they are subject to export controls by the Dutch government. This means that China's semiconductor industry will encounter technical bottlenecks and it is difficult to keep pace with the international level.
Therefore, China's semiconductor industry needs to accelerate the pace of independent research and development and innovation, break through the technical problems of key equipment and materials such as lithography machines as soon as possible, and achieve self-sufficiency. At the same time, we should also actively cooperate and exchange with other countries and regions to strive to break the blockade and suppression of China's semiconductor industry by the United States and other countries.