LRCX - Chinese chip giant SMIC seeks talks with ASML for equipment amid U.S. ban - Digitimes

Chinese chip giant SMIC (SMICY) is seeking talks with Dutch semiconductor equipment company ASML (ASML) for EUV lithography equipment, according to Digitimes sources.SMIC has reportedly struggled to obtain the equipment from ASML, which isn't legally bound by the U.S. supplier ban on the Chinese company but could still prove wary of stoking tensions.Extreme ultraviolet or EUV lithography uses light with a very short wavelength to create billions of tiny structures on silicon that make up a chip. EUV equipment can produce smaller, faster, and more powerful chips than older styles of lithography machines.SMIC reportedly needs the equipment for its sub-7nm process technologies.ASML shares closed U.S. trading up 1.2% to $477.30. U.S.-based semiconductor equipment companies Lam Research (LRCX), Applied Materials (AMAT), and KLA (KLAC) closed down 1.4%, 1.2%, and 0.3%, respectively.Earlier today, Deutsche Bank sidelined Lam Research in a downgrade, citing potential risk factors that include the U.S. ban on SMIC.

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Chinese chip giant SMIC seeks talks with ASML for equipment amid U.S. ban - Digitimes