ASML: China’s Chip Technology Lags Behind 10 to 15 Years Without EUV

ASML Holding NV, a leading lithography machine manufacturer based in the Netherlands, CEO Christophe Fouquet once again emphasized that the US ban on exporting extreme ultraviolet (EUV) lithography machines to China has caused Chinese chip technology to lag behind the West.

In a recent interview with the Dutch publication NRC Handelsblad, Fouquet stated that Chinese companies are unable to acquire cutting-edge EUV lithography tools, resulting in Chinese chip manufacturing technology still trailing behind industry giants such as Intel, TSMC, and Samsung by 10 to 15 years. Despite having top-notch deep ultraviolet (DUV) tools, Chinese chip manufacturers like SMIC are unable to economically compete with TSMC’s process technology.

“Falling behind the West by 10 to 15 years due to the ban on EUV exports will indeed have an impact on Chinese chip technology,” said Fouquet.

This is not the first time Fouquet has discussed the issue of Chinese chip technology lagging behind the West. On October 22nd of this year, during an interview at the Bloomberg Technology Summit in London, Fouquet stated that the US is expected to impose greater pressure, further restricting the sale of semiconductor technology to Communist China; under the current sanctions, Chinese chip technology lags behind by more than 10 years.

ASML has become a focal point in the US-China chip war. Lithography technology is at the core of chip manufacturing, with ASML being the sole global manufacturer producing extreme ultraviolet (EUV) equipment. EUV lithography machines are essential for producing the most advanced chips globally, used in various applications from electric vehicles to military equipment. The US government has been working with allies such as Japan and the Netherlands to ensure these machines do not fall into Chinese hands.

ASML has never shipped EUV tools to China. In 1996, the US led several Western countries to sign the Wassenaar Arrangement, banning the export of advanced technologies to China, with the Netherlands being one of the signatory countries.

Although China cannot access EUV lithography machines, ASML can export deep ultraviolet (DUV) lithography tools to China, such as the Twinscan NXT:2000i.

According to a report by Tom’s Hardware Guide website, Chinese-supported enterprises including Huawei have been trying to establish their own lithography chip manufacturing tools and ecosystems, a process that may take up to 10 to 15 years. As a reference, it took ASML and its partners over 20 years from basic work to completing commercial machines to establish the EUV ecosystem. However, when the Chinese semiconductor industry develops low-numeric aperture EUV tools, the western chip industry will have high-numeric aperture EUV lithography or even super-numeric aperture EUV equipment.

In order to further prevent China from acquiring advanced chip technology for military expansion and enhanced surveillance, the US is also restraining China from replicating mainstream DUV lithography machines from ASML (like the Twinscan NXT:2000i).

In September, the Dutch government announced new export control regulations, requiring ASML to obtain a permit to provide spare parts and software updates for computer chip manufacturing equipment previously sold to Chinese customers that are now subject to export restrictions.

The US government is also pressuring ASML to stop maintaining and repairing advanced DUV systems in China. Fouquet stated in an interview with NRC Handelsblad that ASML aims to maintain control over its machines in China to prevent the risk of sensitive information leakage.

Fouquet stated in September that restricting exports to China is a bipartisan concern in the US, “So I believe that regardless of what happens in November, this will continue.” He said. November refers to the US presidential election. Trump won the election and will be inaugurated as President of the United States on January 20, 2025.