ASML to Add 600 DUV Machines to China's Semiconductor Manufacturing Capacity by 2025

[AleksandarK]

Thanks to the TMTPost interview with the Global Vice President and China President of ASML, Shen Bo, the Dutch semiconductor equipment manufacturer has revealed that around 1,400 of its deep ultraviolet (DUV) lithography and metrology machines are currently installed in China. The company is expected to achieve a global output of 600 DUV equipment units by the end of 2025. Shen Bo stated that the company aims to install 500-600 units of DUV machinery in China by late 2025 or early 2026. The growth in ASML's Chinese revenues was notably high, with China contributing 46% of the company's system sales in 3Q 2023, representing an 82% revenue increase from the previous quarter.

China plans to build 25 12-inch wafer fabs in the next five years, covering logic wafers, DRAM, and MEMS production. ASML currently has a substantial presence in China, with 16 offices, 12 warehouses, distribution centers, development centers, training centers, and maintenance centers. The company employs over 1,600 people for its China operations. Despite the export restrictions imposed by the US government, ASML anticipates that the new measures will have little impact on its financial outlook for 2023 as it strives to meet the growing demand for semiconductor manufacturing equipment in the global market.



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[TumbleGeorge]

1400+600=2000
Good number.
ASML had not choice. Sale and get money or China will make scanners itself.

 

[user556]

USA has already imposed its restrictions. EUV is banned from China. DUV is not banned.

 

[bobsled]

Is ASML related to ASMR?

 

[Prima.Vera]

Wait... What??
I thought they were banned/restricted/not allowed/other bs/etc for giving any technology to China thiefs...
What does this mean??

 

[TumbleGeorge]

Wait... What??
I thought they were banned/restricted/not allowed/other bs/etc for giving any technology to China thiefs...
What does this mean??

These are for legacy nodes and are not among the sanctioned ones.

 

[watzupken]

USA has already imposed its restrictions. EUV is banned from China. DUV is not banned.

It is a matter of time US will expand the sanctions.

What US is doing is bullying these companies to comply to their sanctions, at the expense of significant lost in profit and business that will likely not come back. To be honest, if the likes of ASML decides to not comply with the sanctions, I don't believe US can do anything to them because ASML can also choose to not sell to the US. US can block ASML from US technology, but that will be a scorch earth decision that will impact everyone including themselves big time.

Just like everything else that goes on in Winnie The Pooh Land: They will make the scanners now that they have a copy to reverse engineer.
View attachment 320159

I don't believe it is as easy as you descibed it. If this is indeed the case, there is no reason why ASML is a monopoly in the manufacturing of such machines. Having said that, not having access to the machines does not mean China cannot poach talents to create/ recreate their own. When you can't buy it off the shelf just means that you have to make your own with the right people.

 

[Fourstaff]

China is going all out to saturate 7nm+ nodes it seems.

 

[Vayra86]

Is ASML related to ASMR?

Strangely, looking at the insides of a scanner has a certain touch of it, imho

 

[TumbleGeorge]

don't believe it is as easy as you descibed it. If this is indeed the case, there is no reason why ASML is a monopoly in the manufacturing of such machines.

Oh, there may be a reason. These are nodes that have not been used for top chips for a decade or more. They probably just sell cheaply enough that there is no reason to organize your own production. Still 28nm and above. Can some old enough model scanners already cost as much as a mid-range car per piece?

 

[Vayra86]

China is going all out to saturate 7nm+ nodes it seems.

At tremendous cost per wafer, yes, because they realize this is all they can do in the near/mid term.

 

[Fourstaff]

At tremendous cost per wafer, yes, because they realize this is all they can do in the near/mid term.

As long as you don't need to pay shareholders, there is money for investments however poor their returns may be.

 

[Vayra86]

As long as you don't need to pay shareholders, there is money for investments however poor their returns may be.

Sure, for domestic, they can certainly make things now. But why then make the effort for a highly costly node? Its not like say phones can't run on 14nm or something.

For their own research/large scale purposes its not a very great prospect either if you have to mass produce at much higher cost than anyone else.
But yes, they can still get stuff done.

 

[kondamin]

That's a lot of machines.
What are they planning on producing with all that capacity?

 

[Fourstaff]

Sure, for domestic, they can certainly make things now. But why then make the effort for a highly costly node? Its not like say phones can't run on 14nm or something.

For their own research/large scale purposes its not a very great prospect either if you have to mass produce at much higher cost than anyone else.
But yes, they can still get stuff done.

Self sufficiency, supply chain dominance, training staff to operate in complex equipment, stripping equipment to copy etc.

They may be higher cost now but it will not stay at higher cost for long with these amount of scaling.

 

[Patriot]

It is a matter of time US will expand the sanctions.

What US is doing is bullying these companies to comply to their sanctions, at the expense of significant lost in profit and business that will likely not come back. To be honest, if the likes of ASML decides to not comply with the sanctions, I don't believe US can do anything to them because ASML can also choose to not sell to the US. US can block ASML from US technology, but that will be a scorch earth decision that will impact everyone including themselves big time.


I don't believe it is as easy as you descibed it. If this is indeed the case, there is no reason why ASML is a monopoly in the manufacturing of such machines. Having said that, not having access to the machines does not mean China cannot poach talents to create/ recreate their own. When you can't buy it off the shelf just means that you have to make your own with the right people.

The EUV research headquarters for ASML while it is a Dutch company is in New Jersey. Sooo yeah they can choose to not use EUV anywhere or...
That is also why TSMC can be persuaded, as they need those EUV machines.

 

[Hugis]

Back on topic please.

 

[Zaqq]

That's a lot of machines.
What are they planning on producing with all that capacity?

In case of some "unexpected" events like US imposing more export restrictions or some trouble with nearby rogue island province it's nice to have some spare capacity...