Christophe Fouquet, CEO of Dutch lithography giant ASML, has shed light on the current state of China's semiconductor manufacturing industry. With ASML being the sole producer of Extreme Ultraviolet (EUV) Lithography machines—essential for creating advanced chipsets—Fouquet asserts that the lack of access to these sophisticated machines has placed China's top foundry, SMIC, a staggering 10 to 15 years behind its Western counterparts.
ASML's EUV machines, which cost hundreds of millions each, enable the production of intricate circuitry patterns on silicon wafers, refining the capabilities of chipmakers globally. In contrast, Chinese firms, although equipped with older Deep Ultraviolet (DUV) technology, face significant hurdles in advancing to the latest manufacturing processes available in the West.
While ASML does continue to provide DUV machines and service to Chinese companies, the situation is complicated by geopolitical tensions. The U.S. government is pressuring ASML to cease DUV machine repairs in China, fearing that such actions could empower local manufacturers to develop their own lithography technology.
"By banning the export of EUV, China will lag 10 to 15 years behind the West," stated Fouquet, underlining the urgency of the issue. Huawei and SMIC are reportedly investing in the development of proprietary lithography tools, but experts believe it will take over a decade before these efforts come to fruition. By that time, leading foundries like TSMC and Samsung will have significantly advanced their technology, further widening the gap.
Fouquet emphasized that repairing existing DUV machines is crucial for ASML. If they relinquish maintenance responsibilities to Chinese firms, there is a risk that sensitive information could be leaked, enabling them to create counterfeit lithography tools. This dynamic leaves ASML in a challenging position, balancing business operations in China with the broader implications for global semiconductor competitiveness.
