It seems that the U.S. request was accepted due to original technology patents and core parts subordination
A direct hit to SK Hynix… Diplomatic efforts required, such as exceptions for Korean companies
The Netherlands has announced that it will strengthen export control of its semiconductor equipment to China. Exports of deep ultraviolet (DUV) lithography equipment used in general-purpose semiconductor production to China are expected to be virtually banned. The burden on domestic companies such as Samsung and SK, which operate factories with the equipment in China, has increased.
According to Archyde.com on the 8th (local time), Dutch Foreign Trade and Development Cooperation Minister Rie Schreinemacher said in a report sent to Parliament on the same day that “there is a need to expand existing export control regulations for certain semiconductor production equipment.” will be introduced before summer.
Previously, in 2019, the Netherlands banned ASML, a semiconductor equipment company from its country, from exporting state-of-the-art extreme ultraviolet (EUV) lithography equipment to China. Semiconductors are manufactured by inscribing circuits on a wafer using strong light, and extreme ultraviolet rays are used as a light source for ultra-fine processes with a line width of 7 nm or less.
The Netherlands has allowed exports to China for DUV lithography equipment of the previous generation. However, according to this policy to strengthen the existing export control regulations, exports of DUV exposure equipment are also expected to be affected.
In the meantime, the Netherlands has expressed strong dissatisfaction with the request of the US Joe Biden government to strengthen export controls of semiconductor equipment to China. The decision by the Netherlands to join hands with the United States seems to be an inevitable choice due to the fact that the source technology for semiconductor equipment and parts makers for core equipment are located in the United States.
ASML issued a statement on the same day, saying, “In order to export DUV equipment that is subject to regulation in the future, a separate license must be obtained,” but “however, not all DUV equipment will be subject to regulation.” ASML said, “There is no additional information (which equipment is targeted), but it seems that it will only be applied to the latest DUV equipment.”
If the Netherlands imposes export controls on DUV equipment, domestic semiconductor companies operating factories in China are expected to face greater business risks. Archyde.com pointed out that ASML’s biggest customers, Samsung Electronics and SK Hynix, both have significant production facilities in China.
In particular, SK Hynix, which currently produces DRAMs in the mid to late 10nm to early 20nm range with DUV equipment at its Wuxi plant in China, can have a direct impact. An official from the semiconductor industry said, “Management uncertainty for domestic companies with Chinese factories is growing.”
The Chinese government strongly objected, saying that the Netherlands is restricting normal trade. Chinese Foreign Ministry spokesman Maoning said at a regular briefing on the 9th, “What we want is for the Netherlands to adhere to market principles with an objective and fair stance and not abuse export control measures along individual countries (US).” We will take action to protect our legitimate rights and interests.”