ASML will open Beijing facility despite US sanctions on China
(2025/03/10)
- Reference: 1741619514
- News link: https://www.theregister.co.uk/2025/03/10/asml_to_open_beijing_facility/
- Source link:
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 [1]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.
[2]
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.
[3]
[4]
In retaliation, Beijing [5]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 [6]isn't keen on the CHIPs Act - took over in Washington and introduced a further hardening of its stance on China, [7]hiking tariffs on goods imported from the country by an extra ten percent.
[8]
ASML is currently the world's only supplier of [9]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.
According to [10]TechPowerUp , Chinese megacorp Huawei is testing the system at a facility in the city of Dongguan, with trial production runs scheduled from September, and mass manufacturing targeted for 2026. It is said to use a technique called laser-induced discharge plasma (LDP), claimed to be simpler and less costly than ASML's laser-produced plasma (LPP) technology.
$373M ASML chipmaker shrinks to $228 – but it's made of Lego [11]READ MORE
Huawei has previously caught the US off-guard by introducing a [12]smartphone using a homegrown 7nm processor , technology it was not believed capable of producing.
The Register asked Huawei to comment but it decliend the invitation. ASML had not responded at the time of publication.
[13]
In contrast to ASML, IBM shuttered its Chinese research and development operations at the start of March.
Big Blue signalled [14]last year that it intended to close its China Development Lab and China Systems Lab after 32 years of operations, due to fractious relations between Washington and Beijing.
It was also reported at the time that the closure was blamed on competition from China's state-subsidized rivals, and that IBM was shifting R&D work outside the country. It is believed to impact more than 1,800 staff.
[15]Talk of Broadcom and TSMC grabbing pieces of Intel lights fire under investors
[16]EU plans to 'mobilize' €200B to invest in AI to catch up with US and China
[17]ASML makes hay while suns shines, but Trump could rain on its parade
[18]TSMC prioritizing high-NA EUV scanners for R&D
In other chip news, the [19]Office of the US Trade Representative has announced a public hearing this week for an investigation into claims of China "targeting of the semiconductor industry for dominance."
This refers to China [20]ramping up production of so-called mature nodes –manufacturing processes that are no longer at the cutting edge but still used to make chips for a wide variety of applications including automotive, industrial, and consumer products.
The European Commission is [21]similarly concerned that China could flood the global market with cheap chips, undercutting Western manufacturers and pushing them out ®.
Get our [22]Tech Resources
[1] https://www.asml.com/en/investors/annual-report/2024
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2025/01/17/china_us_chip_subsidies/
[6] https://www.theregister.com/2025/03/05/trump_speech_scrap_chips_act/
[7] https://www.theregister.com/2025/03/03/trump_tariffs_stock_market_reaction/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://www.asml.com/en/products/euv-lithography-systems
[10] https://www.techpowerup.com/333801/china-develops-domestic-euv-tool-asml-monopoly-in-trouble
[11] https://www.theregister.com/2024/12/03/asml_lego_twinscan/
[12] https://www.theregister.com/2023/09/19/huaweis_advanced_chip_sparks_us/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.ft.com/content/b39ed853-dcf0-4a66-9b32-f993cebcd094
[15] https://www.theregister.com/2025/02/20/intel_carveup/
[16] https://www.theregister.com/2025/02/12/eu_plans_to_mobilize_200b/
[17] https://www.theregister.com/2025/01/29/asml_q4_2024/
[18] https://www.theregister.com/2024/11/07/tsmc_highna_euv/
[19] https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/march/public-hearing-regarding-section-301-investigation-chinas-acts-policies-and-practices-related
[20] https://www.theregister.com/2024/10/25/mature_chip_output_china/
[21] https://www.theregister.com/2024/07/08/eu_china_commodity_chips/
[22] https://whitepapers.theregister.com/
The supplier of advanced lithography equipment disclosed in its latest [1]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.
[2]
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.
[3]
[4]
In retaliation, Beijing [5]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 [6]isn't keen on the CHIPs Act - took over in Washington and introduced a further hardening of its stance on China, [7]hiking tariffs on goods imported from the country by an extra ten percent.
[8]
ASML is currently the world's only supplier of [9]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.
According to [10]TechPowerUp , Chinese megacorp Huawei is testing the system at a facility in the city of Dongguan, with trial production runs scheduled from September, and mass manufacturing targeted for 2026. It is said to use a technique called laser-induced discharge plasma (LDP), claimed to be simpler and less costly than ASML's laser-produced plasma (LPP) technology.
$373M ASML chipmaker shrinks to $228 – but it's made of Lego [11]READ MORE
Huawei has previously caught the US off-guard by introducing a [12]smartphone using a homegrown 7nm processor , technology it was not believed capable of producing.
The Register asked Huawei to comment but it decliend the invitation. ASML had not responded at the time of publication.
[13]
In contrast to ASML, IBM shuttered its Chinese research and development operations at the start of March.
Big Blue signalled [14]last year that it intended to close its China Development Lab and China Systems Lab after 32 years of operations, due to fractious relations between Washington and Beijing.
It was also reported at the time that the closure was blamed on competition from China's state-subsidized rivals, and that IBM was shifting R&D work outside the country. It is believed to impact more than 1,800 staff.
[15]Talk of Broadcom and TSMC grabbing pieces of Intel lights fire under investors
[16]EU plans to 'mobilize' €200B to invest in AI to catch up with US and China
[17]ASML makes hay while suns shines, but Trump could rain on its parade
[18]TSMC prioritizing high-NA EUV scanners for R&D
In other chip news, the [19]Office of the US Trade Representative has announced a public hearing this week for an investigation into claims of China "targeting of the semiconductor industry for dominance."
This refers to China [20]ramping up production of so-called mature nodes –manufacturing processes that are no longer at the cutting edge but still used to make chips for a wide variety of applications including automotive, industrial, and consumer products.
The European Commission is [21]similarly concerned that China could flood the global market with cheap chips, undercutting Western manufacturers and pushing them out ®.
Get our [22]Tech Resources
[1] https://www.asml.com/en/investors/annual-report/2024
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2025/01/17/china_us_chip_subsidies/
[6] https://www.theregister.com/2025/03/05/trump_speech_scrap_chips_act/
[7] https://www.theregister.com/2025/03/03/trump_tariffs_stock_market_reaction/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://www.asml.com/en/products/euv-lithography-systems
[10] https://www.techpowerup.com/333801/china-develops-domestic-euv-tool-asml-monopoly-in-trouble
[11] https://www.theregister.com/2024/12/03/asml_lego_twinscan/
[12] https://www.theregister.com/2023/09/19/huaweis_advanced_chip_sparks_us/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z88atPUkJZjo34YU3DqKsQAAAVg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.ft.com/content/b39ed853-dcf0-4a66-9b32-f993cebcd094
[15] https://www.theregister.com/2025/02/20/intel_carveup/
[16] https://www.theregister.com/2025/02/12/eu_plans_to_mobilize_200b/
[17] https://www.theregister.com/2025/01/29/asml_q4_2024/
[18] https://www.theregister.com/2024/11/07/tsmc_highna_euv/
[19] https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/march/public-hearing-regarding-section-301-investigation-chinas-acts-policies-and-practices-related
[20] https://www.theregister.com/2024/10/25/mature_chip_output_china/
[21] https://www.theregister.com/2024/07/08/eu_china_commodity_chips/
[22] https://whitepapers.theregister.com/
Anonymous Coward
The orange bully will have no problem sanctioning ASML. Strictly speaking it would be unwise for any sane person to try, because the Netherlands have a $30bn odd trade deficit with the US, but fat boy will work on the basis that if he leans on the Germans they'll have a word with the Dutch. And he'll probably be right.
The Europeans could in theory place sanctions on ASML exporting to the US and that would be interesting, but I can't see that happening any time ever. Or, they could announce that they're lifting the existing restrictions on ASML exports to China. Again, can't see that happening either.
Unfortunately, as with all bullies, he'll keep throwing his ample weight around until somebody does stand up to him.
elsergiovolador
ASML should ignore the US, just like the US ignores Europe.
Krasnov made the bed with Russia.
Pssst.. Do you want some secondhand EUV tech?
MrBanana
ASML seem to have sidestepped export restrictions on new kit by refurbing old equipment. A bit like webuyanyphotolithographyequipment.com.
Will it fly? With the Orange Toddler in the Whitehouse, who knows where tariffs, sanctions, or anything else will be headed - it is only Monday.
Re: Pssst.. Do you want some secondhand EUV tech?
cyberdemon
If you take a photolithography machine and replace all of its components, is it the same photolithography machine?
Not a huge China fan…
Anonymous Coward
…but remind me why Europe has sanctions on China?
Isn’t picking fights with China a USA priority?
Good luck with trying to sanction ASML (and presumably all its customers).