ASML To Open Beijing Facility Despite US Sanctions On China

Arthur T Knackerbracket has processed the following story:

Chipmaking tool biz ASML plans to open a new facility in China this year amid rising trade tensions between Washington and Beijing.

The supplier of advanced lithography equipment disclosed in its latest Annual Report that it aims to inaugurate a Beijing-based Reuse & Repair Center in 2025, recognizing the importance of China as one of its largest markets, alongside Taiwan.

This is a facility for reconditioning and reusing materials from systems that have been returned from the field, so the unit won't manufacture from scratch.

The decision comes after US authorities extended the list of restrictions on suppliers of chip manufacturing tech in December to include metrology -the precise measurement and validation of semiconductor materials using e-beams, X-rays and more - and software. Meanwhile further fab locations, mainly in China, were added to the export blacklist.

In retaliation, Beijing kicked off an investigation in January to decide if US subsidies to chipmakers are harming its semiconductor companies and amount to unreasonable trade practices.

This was days before President Donald Trump's administration - which itself isn't keen on the CHIPs Act - took over in Washington and introduced a further hardening of its stance on China, hiking tariffs on goods imported from the country by an extra ten percent.

ASML is currently the world's only supplier of extreme ultraviolet (EUV) photolithography equipment, used in the making of advanced chips with smaller features to cram in more circuitry. Export of these products to China was blocked by the Dutch government several years ago.

Fresh reports from China now suggest local researchers may have found a way to produce light at a 13.5 nm wavelength - the same in ASML's EUV kit - and are working to produce homegrown tech to sidestep the export ban.

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