German companies suffer heavy losses due to U.S. semiconductor export controls to China

Not long ago, Japan and the Netherlands have reached an agreement with the United States to begin restricting the export of advanced process chip manufacturing equipment to China. This will not only affect the three countries of the United States, Japan and the Netherlands, but also indirectly affect other countries including Germany. The German media "Youth Welt" stated that this directly affects two German companies, Carl Zeiss AG and TRUMPF.

ZEISS provides high-tech mirrors for ASML lithography machines, and TRX provides laser technology. The total value of equipment provided by Zeiss and Chuangpu accounts for about 2/5 of the added value of ASML EUV lithography machines. Of Zeiss' annual turnover (7.5 billion euros), 2.3 billion euros come from the semiconductor business. An EUV machine costs about US$160 million, and a DUV lithography machine costs US$80 million.

According to sources, if ASML's sales in the future are reduced due to business contraction in China, then Zeiss and Chuangpu will also be affected. In addition, Infineon is Germany's largest semiconductor manufacturer, and its Chinese business accounts for 38% of sales, and the manufacturer may be affected by sanctions from the US chip industry.

Germany's Handelsblatt reported last week that the "chip war" is also affecting other countries, such as EU countries such as Germany and the Netherlands. German companies, such as FUCHS, BASF and BOSCH, which have invested heavily in China, will lose out.

Not long ago, German silicon wafer manufacturer Siltronic said that current customer demand for its silicon wafers is still strong, but the slowdown in the end market may drag down its performance in 2023.