CXMT and YMTC stockpile ASML tools for expansion plans

Chinese memory maker CXMT and storage giant YMTC have reportedly built up enough ASML lithography equipment to support expansion plans for the next three years, even if access to the supplier is blocked. The companies have secured sufficient DUV lithography tools from ASML as tensions rise over potential restrictions on shipments of older chipmaking machines to China.

The United States government is reportedly pressing the Dutch government to completely halt tool exports to China. A new bipartisan proposal, the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act, would push allied countries to align on technology bans that include older DUV machines.

Such restrictions could sharply reduce ASML’s exposure to China, where older DUV tools are now in focus for US export controls. Nearly one-fifth of ASML’s projected revenue for this year could disappear if the bill is passed.