ASML Prepares for Shipment Delays After China's New Rare Earth Regulations
Facing the U.S. government's unreasonable encirclement and suppression, China has launched new rare earth regulations as a "shockwave," and the Dutch lithography equipment manufacturer ASML, which was previously used by the United States as a "chokehold tool" against China, now finds itself in a difficult position.
According to a report by Bloomberg on October 10 local time, as the Sino-U.S. trade conflict continues, companies in the global semiconductor supply chain are preparing to deal with the impact of the escalating situation. A source familiar with the matter revealed that China's new rare earth regulations could lead to shipment delays of several weeks for ASML, which is the only company in the world that produces the most advanced semiconductor manufacturing equipment.
The report pointed out that the semiconductor manufacturing machines sold by ASML and Applied Materials are particularly dependent on rare earths, because these devices contain extremely precise lasers, magnets, and other components that use rare earth elements.
A source familiar with ASML said that the company is preparing for potential business disruptions, especially because the new Chinese regulations require foreign companies to obtain approval before re-exporting products containing Chinese rare earths. The source added that ASML is currently lobbying its allies in the Netherlands and the United States for alternatives. ASML declined to comment on this.
A senior manager at a major American chip company said that the company is still assessing the potential impact, but the most obvious risk it faces is the rise in prices of rare earth magnets, which are crucial in the chip supply chain. Another executive from an American chip company said that the company is urgently trying to determine which products contain rare earths from China and is concerned that China's export licensing system may cause its supply chain to stall.
"This is the strictest export control China has implemented so far," said Gracelin Baskaran, an expert on critical minerals at the Center for Strategic and International Studies (CSIS). "It is clear that they (China) have sufficient power and leverage not only American companies must comply with the new regulations, but also companies around the world must comply."
Jacob Feldgoise, a senior data research analyst at the Center for Security and Emerging Technology at Georgetown University, said: "In the semiconductor value chain, China's new export controls may have the greatest impact on chip manufacturers that use rare earth chemicals in the chip manufacturing process and tool manufacturers that integrate rare earth magnets into their equipment."
According to reports, some of the largest chip manufacturers in the world, including Intel, TSMC, and Samsung Electronics, rely on ASML's equipment to produce semiconductors. Currently, Samsung Electronics and Intel have declined to comment, while TSMC did not respond to the request for comments.
Original: www.toutiao.com/article/1845652345104650/
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