ASML - ASML extends supply deal with banned chipmaker SMIC

ASML ([[ASML]] -3.6%) and SMIC (SMICY), China's largest chipmaker, extend their supply agreement until the end of 2021.SMIC has already spent $1.2B with the semiconductor equipment company under the agreement, which started in 2018.ASML says the order relates to deep ultraviolet lithography ((DUV)), an older chip machine than extreme ultraviolet lithography ((EUV)).Late last year, the U.S. put SMIC on a ban list that requires domestic companies to apply for licenses to supply to the company. ASML is in the Netherlands, but the U.S. reportedly pressured the government to not sell the advanced EUV machines to SMIC.Dutch officials didn't renew the license for shipping the EUV order at the time.Last week, ASML signed a five-year, $4.3B deal with memory giant SK Hynix.

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ASML extends supply deal with banned chipmaker SMIC