The order of lithography machine was canceled, the United States pressed Dutch companies, and China's chip industry faced challenges.
Recently, the U.S. government pressured Dutch semiconductor equipment manufacturer ASML to cancel orders for lithography machines in China before the export ban took effect. The Chinese government strongly resented this move, and the spokesperson of the Ministry of Foreign Affairs criticized the US bullying behavior for violating international trade rules. As a global leader in the field of lithography machines, ASML's business in China has been severely impacted, and its future development prospects have been clouded.
Semiconductor chips are the cornerstone of supporting the development of modern science and technology, and their manufacturing process is inseparable from the core equipment of lithography machine. The lithography machine prints miniature circuit patterns on silicon wafers with a precise lithography process, which is a key link in the chip manufacturing process. The global lithography machine market has been monopolized by a few manufacturers for a long time, and ASML, as a local company in the Netherlands, is in a leading position in this field with its leading technology.
As the world's largest consumer of chips, China has been relying on imports to meet domestic demand. In order to realize the independence and controllability of the chip industry, the Chinese government has vigorously supported the development of domestic enterprises, and ASML has become an important partner. As the technological confrontation between China and the United States intensified, the United States began to abuse national security grounds and impose a severe technological blockade on China.
At the beginning of this year, the U.S. government abruptly ordered ASML to cancel orders for lithography machines in China, citing the need to prevent the equipment from being used for military purposes. Although ASML claimed that there was no reason to stop serving Chinese customers, it ultimately had to submit to US pressure. This undoubtedly dealt a heavy blow to the development of China's chip industry, and also cast a shadow on ASML's market prospects in China.
In the face of maximum pressure from the United States, the Chinese government firmly opposes it, and the spokesperson of the Ministry of Foreign Affairs made a strong statement, accusing the United States of seriously violating international trade rules and undermining the security and stability of global industrial and supply chains. China urges the Dutch government to uphold an objective and fair position, respect the spirit of the contract, and safeguard the interests of bilateral enterprises.
The U.S. pressure on ASML has made China's chip industry face severe challenges. For a long time, China's chip industry has been highly dependent on imports, especially core equipment and key technologies such as lithography machines. Once the supply chain is disrupted, domestic chip production will come to a standstill.
According to incomplete statistics, there are currently nearly 800 ASML lithography machines in Chinese mainland, distributed in major chip manufacturing enterprises. The proper operation of these equipment requires ASML to provide maintenance services and the replacement of critical components. Once repairs and spare parts are not available, there is a high risk that these lithography machines will be "scrapped".
To make matters worse, ASML has remote control access in its lithography machine design, which allows the equipment to be switched off remotely. If ordered by the U.S. government, ASML could cut off support for equipment in China at any time. At that time, Chinese chipmakers will be in the predicament of being "stuck".
In the face of such a severe situation, the Chinese government and enterprises must accelerate the pace of development of domestic lithography machines and achieve independent and controllable lithography as soon as possible. At present, significant progress has been made in the localization of lithography machines in China, and companies such as Shanghai Microelectronics are expected to achieve mass production of 28nm lithography machines in 2023.
There is still a big gap between the 28nm process and the current mainstream 7nm and future 3nm advanced processes. To completely solve the problem of "being stuck in the neck", China must make breakthroughs in cutting-edge technologies such as extreme ultraviolet lithography (EUV).
It is gratifying that in the field of EUV lithography machines, the Chinese scientific research team has made breakthroughs. Last year, Huawei and Harbin Institute of Technology jointly developed the first EUV lithography prototype in China.
EUV lithography is the most advanced equipment for chip manufacturing, which can reduce the width of electrical lines to less than 7 nanometers, which is the only way to manufacture advanced chips. For a long time, this technology has been monopolized by foreign countries, and China cannot control it independently.
The breakthrough of Huawei and Harbin Institute of Technology marks a significant progress in the core technology of EUV lithography machines. Domestic EUV lithography machines are expected to replace imported equipment and help China's chip industry achieve independent control.
In addition to independent research and development, China is also actively expanding international cooperation and striving to break the technological blockade. Last year, China and the Netherlands signed a semiconductor cooperation agreement, and the two sides will carry out extensive cooperation in the fields of chip equipment and materials.
China has also strengthened cooperation in the semiconductor field with Russia, Israel and other countries, and strives to build a complete chip industry ecosystem. Through international cooperation, China is expected to acquire more advanced technologies and promote the development of the domestic chip industry.
Although the U.S. blockade of China's chip technology has brought severe challenges to China, it has also accelerated the pace of domestic independent innovation. As long as it adheres to self-reliance and independent innovation, China will be able to achieve independence and controllability in the chip industry.