In a bold move amid escalating US-China tech tensions, Chinese
semiconductor firms like SMIC and Huawei are circumventing strict
export controls on advanced chipmaking equipment by retrofitting older
lithography machines from Dutch giant ASML. These curbs, imposed by the
US and allies like the Netherlands, aim to limit China's access to
cutting-edge tools for producing high-performance chips used in AI,
smartphones, and military applications. However, by sourcing spare
parts such as wafer stages, precision lenses, and alignment sensors
from secondary markets and employing third-party engineering teams,
Chinese companies are upgrading dated deep ultraviolet (DUV) systems
like the ASML Twinscan NXT:1980i to mimic the capabilities of
restricted extreme ultraviolet (EUV) machines.
This retrofitting process involves multi-patterning techniques,
where multiple DUV exposures achieve finer resolutions down to
7-nanometer nodes or better, enabling production of chips like Huawei's
Kirin 9030 processor. Despite ASML's compliance with
regulations-banning direct upgrades or sales of new advanced
systems-its revenue from China surged from €7.2 billion (26% of global
sales) in 2023 to €10.2 billion (36%) in 2024, though a sharp decline
is anticipated post-ban enforcement. The US Bureau of Industry and
Security is now scrutinizing these practices, highlighting loopholes in
the controls. ...read a full article
Updated:12:40 AM CET Jan,12
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