The US has banned advanced EUV machines being sold to China, but does it mean that non-China firms cannot use them in China?

Question

Recently the US govt has banned China firms from acquiring the machines for 14nm process technology and below. This legislation specifically targets China firms. However, what stopping non-China firms from working with China firms? Also, for example TSMC has the EUV machines from ASML to produce 7nm and 5nm and potentially 3nm process. But TSMC reportedly has plants in Shanghai, China. Is there any law that specifies they cannot bring those EUV machines made by ASML to mainland China? Whether be it under their own control or leased to another party (the latter beinng a loophole in the law) Sure, its a Taiwanese owned company with plants in mainland China and they have no obligation to deploy those high end manufacturing there, but for a legal perspective, is there anything to say they can't operate such equipment on the mainland?

So what does the law entails? It it a broadly worded just to restrict China Chinese companies from getting hold of advance lithography tech or does it go further in details?

Also if ASML's EUV machines are in Taiwan and if US recognizes one-China policy, then having it in Taiwan wouldn't hold up in a court of law?

Answer 1

This depends from the definition the "China Business"

Following this source, "China Business" means the Business as operated in the Deferred Jurisdiction, including all of the relevant Business Employees, Purchased Assets (so our EUV machines), and Assumed Liabilities. The "Deferred Jurisdiction" is the entity to that the sanctions are applied.

Now what does it mean to be in the country? Most logically thinking, this means to be inside the geographical boundaries of the country. I cannot say I am not in the country just because I am on the piece of land within this country, not owned by the local government or local citizens. I cannot say drive a moonshine there or do something else if not permitted by the local laws. Hence if I build a semiconductor plant in this land, it is a semiconductor plant standing in the country, so China business. I cannot place the prohibited EUV machines there.