China’s largest semiconductor contract manufacturer SMIC has announced the completion of a one-year contract for the purchase of industrial equipment worth $ 1.2 billion from the Dutch company ASML. US sanctions have limited the Chinese to the most advanced manufacturing equipment, but have not closed the door to mature (crude) manufacturing processes.
SMIC was included in the US sanctions list at the end of last year. This circumstance is fraught with the fact that in order to sell to the person involved in the “black” list of industrial equipment, software or components, permission is required from the US regulatory authorities. Already in January of this year, SMIC announced that it received a license to purchase equipment for use in mature technical processes – with rates from 28 nm and higher.
SMIC yesterday notified the Hong Kong Stock Exchange that it had entered into a $ 1.2 billion contract with the Dutch manufacturer of lithographic scanners ASML for the supply of equipment. The contract was for a period of one year from March 16, 2020 to March 2, 2021. Apparently, the contract was fulfilled in full. Obviously, SMIC received a license from the United States to purchase equipment of interest to it.
SMIC also said it will do its utmost to continue working with partners to ensure production continuity and plans to expand semiconductor production. In particular, SMIC has started the construction of two new factories: one in Beijing, the second in Shanghai, for which in a year they will have to purchase new equipment from ASML.
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