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$662 -6.0  -0.9%

Last Trade - 09/04/21

Large Cap
Market Cap £69.01bn
Enterprise Value £68.86bn
Revenue £8.70bn
Position in Universe 135th / 6827

Chinese chipmaker SMIC buys $1.2 billion in tools from ASML

Wed 3rd March, 2021 2:28pm
By Stephen Nellis
    March 3 (Reuters) - Semiconductor Manufacturing
International Corp  0981.HK , China's largest chipmaker, has
agreed to buy $1.2 billion in manufacturing tools from ASML
Holding NV  ASML.AS , according to a regulatory filing on
    In December, SMIC was one of dozens of firms put on a U.S.
blacklist that required American semiconductor manufacturing
equipment firms such as Applied Materials Inc  AMAT.O  and Lam
Research Corp  LRCX.O  to obtain a license before exporting
products to the chipmaker.
    The U.S. Commerce Department said the action against SMIC
stemmed from China's efforts to harness civilian technologies
for military purposes and evidence of activities between SMIC
and Chinese military industrial companies of concern. The rules
would still allow the shipment of tools for making less advanced
    ASML, which is based in the Netherlands and is the world's
largest supplier of lithography equipment for making chips,
produces a critical tool required to manufacture advanced chips
- an extreme ultraviolet lithography, or EUV, machine.
    In 2019, the Trump administration pressed Dutch officials
 to cancel a sale of an EUV machine to SMIC. At that time, Dutch
officials declined to renew a license needed to ship the tool.
    ASML, which also makes tools for less advanced chips, did
not immediately return a request for comment on which tools were
included in the most recent sale. 
    On Monday, the National Security Commission on Artificial
Intelligence, or NSCAI, recommended that the United States
coordinate with the Netherlands and Japan to deny export
licenses to China for key chipmaking equipment.*:nL2N2KZ1XO
    "This (sale) is a slap in the face to the NSCAI
recommendations and shows how big the gap with allies is on
these issue," a U.S. semiconductor executive said on condition
of anonymity.

 (Reporting by Stephen Nellis in San Francisco
Editing by Paul Simao)
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