America’s Big Chipmaking Blunder

The Nugget

The United States missed out on a crucial technology, extreme ultraviolet lithography (EUV), which is essential for producing advanced semiconductors. This oversight had significant economic and geopolitical implications, causing the US to lag behind in semiconductor manufacturing.

Make it stick

💡 Extreme ultraviolet lithography (EUV) is the key technology for producing advanced semiconductors.
🌍 The global economy's growth is closely tied to the semiconductor industry.
🪙 Investment and collaboration are crucial for advancing cutting-edge technologies.
🏭 The importance of government support in fostering technological innovation.

The EUV machine is vital for producing the world's most advanced semiconductors.
US administration efforts to prevent the sale of EUV machines to China highlight their strategic importance.

EUV technology originated in the US but faced challenges in transitioning from research to commercial use.
Companies like Intel, AMD, and Motorola collaborated with ASML to advance EUV technology.

TSMC and Samsung led in adopting EUV machines for chip production, surpassing Intel.
Intel's delayed investment in EUV technology caused them to fall behind their competitors.

The US government intervened to prevent ASML from exporting EUV machines to China.
The importance of semiconductors in national security and technological advancement is recognized by governments.

Intel's focus on High Numerical Aperture EUV highlights the industry's shift towards more advanced technologies.
Government initiatives, like President Joe Biden's chips act, aim to revitalize semiconductor manufacturing in the US.

"Extreme ultraviolet lithography is the only reason that we have iPhones that are as fast as they are."
"The US government threw its weight behind ASML over the Japanese companies who were really leading in photolithography at the time."
"It was really thank to ASML's stubbornness that they took years and billions in funding to actually produce EUV technology as we know it now."
"Huawei, which was the world's largest smartphone maker at one point, was buying chips from TSMC."
"Intel's entire plan to turn the company around is predicated on the idea that they can actually get government funding to build semiconductor plants and become a leader again in semiconductor technology."

This summary contains AI-generated information and may have important inaccuracies or omissions.