US-China tech war: Beijing’s semiconductor ambition faces fresh headwinds as Washington adds pressure on SK Hynix
- SK Hynix had planned to move EUV machines to plant in Wuxi, China
- ASML produces lithography systems used by leading global foundries and chip makers including TSMC and Samsung
Beijing’s semiconductor self-development drive is facing fresh headwinds after Washington’s move to block South Korean chip firms from moving advanced equipment to China, analysts say.
SK Hynix, a South Korean semiconductor giant, had planned to install some of its new extreme ultraviolet lithography (EUV) machines produced by Dutch firm ASML in its factory in Wuxi, Jiangsu province. However, this was thwarted after Washington barred it from shipping the equipment to China, according to a Reuters report last week.
SK Hynix chief executive Lee Seok-hee told reporters on Monday that the company’s priority was to upgrade its plant in Icheon with the highly-advanced manufacturing equipment, instead of shipping the EUV machines to Wuxi. He said SK Hynix has been “cooperating well” with the US government.
ASML produces lithography systems used by leading global foundries and chip makers including Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics and Intel. ASML’s EUV machines are required for producing cutting edge 5- and 7-nanometre node chips and are also used in developing key materials used in chip manufacturing.
US Trade Representative Katherine Tai said US restrictions on SK Hynix’s plan to bring EUV machines to a Chinese factory were imposed due to “legitimate concerns”. In comments which aired on Monday, the top US trade official told a radio station in Seoul during a visit to South Korea last week that “it is important for us to work with our partners and our allies in particular, on matters of shared economic and national security” – in an apparent reference to China.