ASML Holding

ASML Holding is a Dutch company, the world's largest supplier of photolithographic systems for the semiconductor industry. The company's products are used to produce computer chips.

The headquarters of the company is located in Veldhoven,. Netherlands There are also 16 service units in different countries of the world. The company's shares trade on the AEX and NASDAQ under the ticker symbol ASML.

Performance indicators

2024: China remains biggest market for ASML despite US pressure

China is still ASML's biggest market despite illegal restrictions on U.S. supply of chip manufacturing equipment.

As of October 2024

China accounted for 49% of system sales in the first quarter of 2024, the Dutch company said. The share of sales in Taiwan, by contrast, more than halved, while the United States accounted for only 6%, which is five pp less than in the previous quarter.

2023: Q4 order volume recovery after disastrous year

In the IV quarter, the volume of ASML orders increased to €9.19 billion ($9.98 billion)

2019: Among the largest companies in the semiconductor industry by revenue

Крупнейшие компании в индустрии semiconductors by revenue in 2019

History

2024: Allocation of 2.5 billion euros by the Dutch authorities to improve Eindhoven's infrastructure for the convenience of the company

On March 28, 2024, the Dutch authorities announced their intention to allocate €2.5 billion to improve transport and other infrastructure in the Eindhoven region. This is done so that the Dutch company ASML, the largest manufacturer of lithographic equipment for the microelectronic industry, abandons plans to transfer its operations abroad.

It is noted that a large-scale government project is designed for several years. The funding will be aimed, among other things, at improving housing conditions, the education sector and the energy complex in the booming technology hub of Eindhoven, where ASML is based. A cabinet statement also said a number of measures would be taken to ease the tax burden on businesses.

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ASML began to consider moving activities to another country against the backdrop of tough anti-immigration policies implemented in the Netherlands. As of the beginning of 2024, about 40% of the 23 thousand ASML employees in this country are from other states. At the same time, ASML CEO Peter Wennink claims that his company is heavily dependent on qualified foreign workers.

The consequences of restricting labor migration are huge - we need foreign specialists for further innovation. If we can't attract such workers in the Netherlands, we'll go where we can do it, "Wennink said.

ASML also said the Dutch government had failed to properly invest in infrastructure development in the Eindhoven area - from improving motorways and housing to rolling out new power grids. In response, the country's authorities initiated a major program to modernize this region.^[1]

2023

US forces company to cancel shipments of machines to China earlier than the deadline

ASML Holding NV canceled the supply of some of its machines China at the request of the presidential administration USA Joe Biden a few weeks before the ban on the export of expensive equipment for the production of microcircuits came into force.

The Dutch manufacturer had licenses to supply the top three deep ultraviolet lithography machines to Chinese firms until January, when the new Dutch restrictions took effect. However, American officials asked ASML to immediately stop the planned deliveries of some machines to Chinese customers.

China Tech Maintenance Ban

On July 14, 2023, it became known that the Dutch company ASML, the world's largest manufacturer of lithographic equipment for the microelectronic industry, faced new export restrictions. ASML will not be able to service equipment previously delivered to China. This will deprive local customers of the opportunity to repair already in operation installations.

According to Bloomberg, additional export control measures are being introduced by the Dutch authorities under pressure from the United States. This is a further escalation of the technological conflict between Washington and Beijing. The new rules prohibit ASML from maintaining, repairing and supplying spare parts for Chinese lithographic equipment without receiving approval from the Dutch government.

World's largest chip equipment maker ASML banned from servicing machinery in China

Moreover, the US authorities will prohibit ASML from supplying China with a number of lithographic scanners using DUV technology (deep ultraviolet lithography). This is, in particular, the TWINSCAN system NXT:2000i and more complex installations. Such equipment makes it possible to produce chips with standards up to 5 nm. Without access to these machines, Chinese manufacturers will be at an extreme disadvantage in the global market. The restrictions, in particular, will hit Semiconductor Manufacturing International Corp. (SMIC), which is the largest contract microchip manufacturer in the PRC. Representatives from the Dutch government, the U.S. Commerce Department and ASML declined to comment.

The new restrictions will significantly affect the plans of Chinese semiconductor manufacturers. They will probably be forced to postpone or cancel some of their projects, "said Dylan Patel, founder of the SemiAnalysis research group.[2]

Supply of defective devices to China to circumvent US sanctions

On July 4, 2023, it became known that the Dutch company ASML, the largest manufacturer of lithographic equipment for the microelectronic industry, supplies China deliberately "defective" devices to circumvent sanctions. USA

According to DigiTimes, we are talking about scanners for lithography in deep ultraviolet light (DUV). ASML deliberately degrades the performance of these devices in order to comply with US export rules. This allows you to ship equipment to Chinese customers without a license. As a result, companies such as SMIC and Hua Hong will produce chips at standards of 28 nm or more, but will not be able to apply modern technological processes.

In particular, ASML intends to supply the Twinscan NXT:1980Di lithographic system to China - this is the least advanced model in the company's assortment. However, it supports the numerical aperture of NA 1.35 optics and resolution <38 нм. Такие характеристики дают возможность организовать производство чипов с нормами 7 нм и даже меньше. Сканер, представленный ещё в 2016 году, использовался TSMC для разработки своего 7-нм техпроцесса.

It is noted that deliberate deterioration of the characteristics of Twinscan NXT:1980Di to prevent the release of products with a topology of less than 28 nm is quite possible. Moreover, for companies like SMIC, the bulk of the revenue comes from the supply of chips manufactured according to standards of more than 28 nm. Therefore, Chinese customers will still be interested in purchasing equipment with limited functionality.

US sanctions oblige American firms and individuals to obtain licenses to export tools and technologies that allow the production of chips with non-planar transistors at 14/16 nm and below, 3D NAND memory with 128 layers or more and other components. The same rules apply to non-U.S. companies that export solutions with U.S. components, as is the case with ASML and Twinscan NXT:1980Di.^[3]

Theft of data by a former employee in China

A former employee in China stole data from chip maker ASML. He stole information "relating to patented technology."

In February 2023, it became known that ASML notified the authorities of the Netherlands and the United States of "unauthorized data misappropriation." The company was forced to inform the American authorities because it fears that the theft of data could lead to a violation of "some export control rules."

2022: US demands company halt China deliveries

In July 2022, the United States insists that the Netherlands ban ASML Holding NV from selling China the basic technologies necessary to produce a significant part of the world's chips, expanding its campaign to curb the country's growth.

If the Netherlands agrees, it would greatly expand the range and class of chip manufacturing equipment now banned from being supplied in, a move that could deal a China major blow to Chinese chipmakers - from Semiconductor Manufacturing International Corp. to Hua Hong Semiconductor Ltd.

US officials are also trying to pressure Japan to stop supplying the same technologies to Chinese chipmakers.

China has condemned U.S. efforts to stop ASML Holding NV and Nikon from selling key technology and called U.S. pressure on chipmakers "technological terrorism."

2019: Carl Zeiss and ASML to pay €150m to Nikon for stealing chip and digital camera technology

On January 23, 2019, it was officially announced that ASML Holding and the German developer of optical solutions Carl Zeiss would pay Nikon 150 million euros to resolve patent conflicts.

The companies signed a binding memorandum of understanding that ends all litigation in Europe, Japan and the United States, including with the participation of the International Trade Commission. Read more here.

Nikon sued 150 million euros from Carl Zeiss and the largest manufacturer of semiconductor equipment ASML

2012: Intel buys 15% stake in ASML Holding

In July 2012, Intel announced that it plans to invest several billion dollars in ASML Holding over the next 5 years to develop computer chip manufacturing tools.

The total investment will amount to $4.1 billion (3.3 billion euros), this money will go both to the purchase of shares above the named Dutch company, and to scientific research in the field of creating chips on 450 mm plates.

As stated in the official statement of Intel, the ultimate goal of the corporation is to reduce the production time of the necessary equipment by two years, which will lead to a significant reduction in costs and increase productivity for semiconductor vendors.

As part of the first phase, Intel will allocate ASML about $680 million for research and development of equipment for the production of 450-mm chips and will acquire about 10% of the company's shares for $2.1 billion. To implement the second phase, ASML shareholders will need approval, it involves providing Intel with an additional $340 million ASML for research and buying another 5% stake in the company for $1 billion.

Brian Krzanich, Intel, is confident that switching to 450mm plates will allow chip manufacturers to seriously save money. For the sake of this savings, Intel is ready to shell out $4.1 billion

Intel COO Brian Krzanich said that historically the transition to new plate sizes has caused a 30-40% reduction in costs, so the company hopes that the transition from 300 mm to 450 mm will have similar results. "The faster we do this, the sooner we will get a profit from improving performance," said the top manager.

ASML counter-stated that it plans to sell up to 25% of its shares to Intel and other semiconductor manufacturers as part of a new program to support its own scientific developments. Intel's share should not exceed 15%.

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