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The export licenses of two lithography machines were revoked, and ASML: affected the shipment of equipment to individual Chinese customers

The export licenses of two lithography machines were revoked, and ASML: affected the shipment of equipment to individual Chinese customers

On the evening of January 1, Dutch lithography giant ASML issued a statement on its official website saying that the export licenses of its NXT:2050i and NXT:2100i lithography systems have been partially revoked by the Dutch government, which will affect individual Chinese customers.

As for the impact of the revocation of the export licenses of the above two products on the company's Chinese customers, ASML responded to the first financial reporter on January 2 that the partial revocation of the license has affected the shipment of related equipment to individual customers in China.

According to ASML's official website, the company has three mainstream DUV lithography system products, namely TWINSCAN NXT:1980Di (hereinafter referred to as "1980Di"), TWINSCAN NXT:2000i (hereinafter referred to as "2000i") and TWINSCAN NXT:2050i (hereinafter referred to as "2050i"). After the new Dutch export control regulations come into effect on January 1, 2024, ASML can only export 1980Di products to Chinese mainland in all DUV lithography systems.

According to the information introduced on ASML's official website, the resolution of a single exposure of 1980Di is greater than or equal to 38nm. In other words, the wafer factory can only manufacture chip products with a process of no less than 38nm through a single exposure of the 1980Di lithography system. However, while it is theoretically possible for fabs to use this type of lithography machine to create chips with smaller processes through multiple exposure technology, this also means more complex steps, higher costs, and lower yields.

In the statement, the company also said that in recent communications with ASML, the U.S. government further clarified the scope and impact of its export controls. On October 17, 2023, the United States issued the latest export control rules, restricting the shipment of specific models of mid-to-high-end DUV immersion lithography machines to certain advanced chip manufacturing fabs. The company does not expect the export license revocation and the latest U.S. export control restrictions to have a material impact on its financial position in 2023.

During the 6th CIIE, Shen Bo, Senior Vice President of ASML and President of China, was interviewed by CBN and other media. Shen expects a series of control measures in 2023 to have a 10%-15% impact on the company's business in China. However, the overall demand in the Chinese market is still very strong in 2024, and the industry is expected to usher in significant growth by 2025.

"Despite the new export control rules, our business in China is still very large. Even taking into account the geopolitical impact, the overall demand in the Chinese market in 2024 is still very strong. In the short term, the impact on the overall business volume will not be too large. From the perspective of long-term business expectations, although the industry has cyclical ups and downs, it will be an upward trend by 2030 as a whole, and there will be no major changes overall. ”

According to the financial report information, in the third quarter of 2023, sales in Chinese mainland accounted for 46% of ASML's overall sales, compared with 24% and 8% in the second and first quarters, respectively. Shen Bo explained that the supply pressure in the past two years has been very high, and the order delivery rate is less than 50%.

"In fact, not only in China, but also in the world, we have this order delivery level of about 50%. 2023 actually gives us a chance to alleviate and make up for the undelivered orders. That's why shipments in the Chinese market will increase significantly in 2023. At present, the demand for mature manufacturing in China is very strong. Shen Bo said that ASML's goal is to achieve a global production capacity of about 600 DUV machines per year by the end of 2025 and early 2026.

Regarding ASML's development strategy in China, Shen Bo told Yicai and other media that the company currently has offices in 16 cities in China and 12 warehousing and logistics centers. By the end of 2023, ASML's installed capacity of lithography machines and measurement machines in China will reach nearly 1,400.

"In 2024, we will basically be executing the undelivered orders in hand, and at the same time, we will also support customers to gradually increase a lot of unused production capacity. Shen Bo said.

The full text of the ASML statement is as follows:

Recently, the Dutch government partially revoked the previously issued export licenses for NXT:2050i and NXT:2100i lithography machines to ship in 2023, which will have an impact on our individual customers in China.

We do not expect this export license revocation and the latest U.S. export control restrictions to have a material impact on our financials in 2023.

In a recent communication with ASML, the U.S. government provided further clarification on the scope and impact of its export controls. On October 17, 2023, the United States issued the latest export control rules, restricting the shipment of specific models of mid-to-high-end DUV immersion lithography machines to certain advanced chip manufacturing fabs.

ASML is committed to complying with all applicable laws and regulations, including export control regulations, in the countries in which it operates.

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div.autoTypeSetting24psection > p,div.autoTypeSetting24psection > section{margin-bottom: 24px;}

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