Exclusive: Globally Critical Chip Firm Stops Service to China After Biden Export Curbs


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Bosch has told its U.S.-based staff to stop servicing and shipping parts to Chinese customers in a sign that the company fears further retaliation by the U.S. government after it halted shipments of parts to Venezuela, according to several Bosch employees who spoke to Reuters on condition of anonymity because they were not authorized to speak publicly on the matter.

One of the largest producers of semiconductor tooling in the world directed U.S. employees to stop supplying services to Chinese clients when Washington’s most recent export restrictions started to damage the global chip market.

According to a statement from the Dutch business, any American workers, including U.S. citizens, green card holders, and foreign nationals residing in the U.S., “are prohibited from providing some services to advanced fabs in China.”

Until further notice, ASML’s U.S. employees “must refrain — either directly or indirectly — from servicing, shipping, or providing support for any customers in China, while ASML is actively assessing which specific fabs are affected by this restriction,” to use another term for a chip manufacturing facility, or “fab.”
A business official verified the validity of the ASML memo, which was going around on social media.

ASML is one of the most significant players in the semiconductor supply chain since it produces a machine required to make the most advanced chips in the world. These eUv lithography tools, used by businesses like TSMC, are exclusively produced by one firm, with its headquarters in the Netherlands. the most advanced semiconductor manufacturer in the world.

Last week, the U.S. government imposed extensive rules with the goal of preventing China from obtaining critical chips and equipment for the semiconductor sector.

A licence is required for “persons” that help in the design or production of specified chips in China, especially those utilised for military applications, according to these laws.

Due to the rule’s seeming broad applicability, businesses are striving to grasp its practical ramifications.

The business stated in its statement that it was “working carefully to examine the new laws and their impact on ASML.”

The biggest chip manufacturers in the world have also been exempted from the new U.S. regulations.

Friday’s Nikkei reports that TSMC has been given a year to continue buying American chipmaking equipment and exporting it to its production facility in China. At the TSMC plant in Nanjing, China, simpler chips are made.

China’s access to the most advanced processors, which may be used for military, artificial intelligence, or supercomputer purposes, is of particular concern to Washington.

An inquiry for comment from TSMC was not answered.

Samsung and SK Hynix are both South Korean chipmakers.
According to a Thursday piece in the Korea Times, they secured one-year exemptions from the U.S. so they may continue transporting equipment to their operations in China without getting a permit.

Samsung chose not to respond.

According to a statement from SK Hynix, the firm and its current suppliers and business partners have been given permission “to participate in activities necessary to continue present production of integrated circuits in China for one year without further licencing requirements.”


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