ASML and SMIC signed a Volume Purchase Agreement (VPA) on February 1, 2021, which was signed on January 1, 2018 and was valid for three years until December 31, 2020. It was revealed that it was postponed until the end of December 2021 on the date. Regarding this extension of the term of validity of the contract, ASML announced on March 3 (European time) that it was disclosed in Hong Kong by SMIC based on the listing rules of the Hong Kong Stock Exchange.
According to ASML, this VPA concerns the purchase of DUV (mainly ArF) exposure equipment, and orders under this agreement have been completed in the last 12 months from 16 March 2020 to 2 March 2021. However, the total amount of the order amounted to 1.2 billion dollars (about 130 billion yen), it was revealed in the disclosure information of SMIC and the announcement of ASML. ASML explains that this disclosure is based on the fact that SMIC had to disclose transactions under VPA under the listing rules and is not a significant matter for ASML.
It is said that SK Hynix has recently signed a five-year VPA (estimated to total 450 billion yen) for EUV exposure equipment with ASML. It is said that such VPA and its contract extension are very common in order to secure the number of such devices purchased, but since they are not publicly announced, they are not much talked about.
Some believe that ASML has banned the export of exposure equipment to SMIC on the U.S. government’s entity list, but there is no such fact regarding DUV exposure equipment, and ASML’s country Looking at the percentage of total shipments by separate shipment, China has risen from 12% in 2019 to 18% in 2020, and YMTC, a Chinese manufacturer aiming for mass production of its own NAND, also has a considerable number of DUV exposure equipment. It is expected to exceed 20% in the future because it seems that it is being continuously delivered.
Regarding EUV exposure equipment, ASML has not shipped to Chinese companies such as SMIC. According to ASML, this is because the Dutch government does not permit exports (at the request of the US government), not ASML’s decision.