The Netherlands Implements Policy on Export Control of Advanced DUV Lithography Machines, Accelerating Semiconductor Equipment Localization
In a recent development, the Netherlands has announced the inclusion of certain semiconductor-related products, particularly lithography machines, under export controls. This move has sparked a response from the Chinese Ministry of Commerce, which expressed dissatisfaction with the decision. It is worth noting that China and the Netherlands have engaged in extensive communication and consultation on the issue of semiconductor export control in recent months. However, despite these efforts, the Dutch government proceeded with placing semiconductor equipment under control.
The Chinese government has criticized the move, attributing it to the United States‘ efforts to maintain global dominance and promote industrial decoupling. The United States has increasingly utilized the concept of national security to expand export control measures, often at the expense of its allies’ interests. This strategy aims to suppress and contain China’s semiconductor industry, disrupting the global supply chains.
China firmly opposes any actions that hinder the development of the semiconductor industry and calls on the Dutch government to abide by international economic and trade rules. China urges the Netherlands to respect market principles and the spirit of contracts, avoiding measures that impede the normal cooperation and development of the semiconductor industry between the two countries. China emphasizes the importance of refraining from abusing export control measures and protecting the common interests of Chinese and Dutch companies as well as the stability of the global semiconductor industry supply chain.
Regarding the impact of these export controls, Caitong Securities conducted an analysis highlighting that mainland China possesses complete local and surrounding industrial chains. Nevertheless, import restrictions have resulted in temporary shortages of equipment. As a result, Chinese semiconductor equipment companies are intensifying their verification of mature process equipment. It is expected that they will subsequently focus on the development of higher-end semiconductor equipment, which will further expand their market share. Investors are advised to keep an eye on semiconductor equipment companies such as Tuojing Technology, Jingce Electronics, Zhongke Feitest, North Huachuang, and China Micro.
Essence Securities also provided recommendations in the semiconductor industry. For semiconductor equipment, the firm suggests paying attention to companies like Jingce Electronics, Changchuan Technology, Tuojing Technology, Zhongke Feice, Xinyuan Micro, North Huachuang, China Micro, Huahai Qingke, and Wanye Enterprises. In terms of semiconductor components, Fu Chuang Precision and Xinlai Yingcai are highlighted, with a focus on Jiangfeng Electronics and Zhengfan Technology. For lithography machine parts, investment opportunities are identified in Maolai Optics, Focuslight Technology, and Jingfang Technology. Additionally, the storage industry chain offers potential in companies such as GigaDevice, Beijing Junzheng, China Micro, Shanghai Silicon Industry, Dinglong shares, and Huahai Qingke. Investors are recommended to keep an eye on Montage Technology, Longsys, Hengshuo shares, Dongxin shares, Yake Technology, and Juchen shares.
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Note: This article is a summary of the original Chinese source.