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LRCX - Lam Research News Story

$662 -6.0  -0.9%

Last Trade - 09/04/21

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

UPDATE 1-Chinese chipmaker SMIC buys $1.2 billion in tools from ASML

Wed 3rd March, 2021 2:40pm
(Adds details on Dutch export licenses, context on ASML sales
to China)
    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
Wednesday.
    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
chips.  urn:newsml:reuters.com:*:nL1N2IY0S3
    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 https://www.reuters.com/article/us-asml-holding-usa-china-insight/trump-administration-pressed-dutch-hard-to-cancel-china-chip-equipment-sale-sources-idUSKBN1Z50HN
 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.
Dutch officials had not approved a license to ship an EUV tool
to China as of late February, according to government records.
    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.
    In January, ASML Chief Executive Peter Wennik said the
company could see "significant upside" selling older chipmaking
technology to China if allowed by government officials to do so.
China accounted for 17% of ASML's 14 billion euros in 2020
sales.
    On Monday, the U.S. 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.  urn:newsml:reuters.com:*: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 and Toby Sterling
in Amsterdam;
Editing by Paul Simao and Jonathan Oatis)
 ((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
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