China Bypasses Chip Export Curbs Using Retrofitted ASML Lithography Equipment
Chinese semiconductor companies are getting around export limits set by the US and the in a bold approach as tech tensions rise.
Companies like SMIC and Huawei are moving forward with advanced chip fabrication, including seven-nanometer technologies that are significant for AI and high-end smartphones. They are doing this by modernising old lithography equipment from the Dutch company ASML.
Retrofitting Older Machines to Sidestep Bans
The calls for changing deep ultraviolet (DUV) lithography systems like ASML’s Twinscan NXT:1980i, which can’t be sent to China right now due to current restrictions.
These improvements use parts from secondary markets, such as wafer stages, high-precision lenses, and alignment sensors. Engineers do the installations in China without ASML’s direct involvement.
Fabs, or local fabrication plants, import these parts from other countries. Then, third-party engineering teams perform the retrofits, improving the accuracy and speed of the overlays. These changes enable smaller, more densely packed chips, which are necessary for cutting-edge applications.
ASML’s Position and Regulatory Scrutiny
ASML says it can fix equipment it sold in , but Dutch rules say it can’t offer updates that improve positioning accuracy or speed by more than 1%. In a statement, the business said, “The company strictly follows these laws and does not support system upgrades that let customers improve performance levels beyond what is allowed by law.”
The U.S. is also reviewing ASML’s maintenance work in China and considering making the rules harsher to limit that kind of support. But now that Donald Trump is back in the White House, it’s unclear whether these steps will move forward, as he has said he wants to ease economic tensions with Beijing.
Getting Around Technical difficultys With Multi-Patterning
Chinese chipmakers use multi-patterning methods since they don’t have access to ASML’s extreme ultraviolet (EUV) machines.
This approach uses multiple DUV exposures to mimic EUV’s effectiveness at advanced nodes, but it takes longer to produce, costs more, and yields fewer excellents. Even with these difficultys, later thanmarket upgrades have greatly boosted production.
TechInsights analysts have confirmed that SMIC can produce chips with processes better than 7 nanometers using these settings. The Kirin 9030 CPU from is the most advanced chip made in China thus far.
Dan Kim, the chief strategy officer of TechInsights, said, “Chinese fabs have been able to do amazing things without having full access to the best equipment that companies like TSMC and Samsung have.”
Changes In The Market and What To Expect In The Future
ASML’s 2050i and 2100i tools, which have the newest stage mechanisms, are now part of newer Chinese manufacturing lines. They were supplied before the Dutch export licence was revoked in September 2024. Before the ban, many of these kinds of pieces of equipment were installed.
ASML’s sales to China jumped from €7.2 billion in 2023, which accounted for 26% of global revenue, to €10.2 billion in 2024, which accounted for 36% of overall sales. In October 2024, though, ASML told investors that sales to China would drop significantly in the next year.
This news shows how determined China is to become self-sufficient in semiconductors. This might change global supply chains and make the tech rivalry between the and China even stronger. As retrofitting work continues, it’s still not clear how well export controls are working.
