ASML Restricts Certain China Exports Amid Escalating US Tech Battle
ASML, a key chip-making equipment supplier, faces export restrictions to China amid a growing tech battle as the Dutch government intervenes, impacting its operations
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The Dutch government has instructed ASML to limit the shipment of certain chip-making equipment to China, the company announced on Monday.
Following the United States' increase in restrictions on the sale of semiconductors to China and urging its allies to do the same, ASML, a semiconductor production equipment manufacturer in the Netherlands, stated that its license for shipping certain lithography systems to China has recently been partially revoked by the Dutch government. This decision will affect a limited number of Chinese customers.
ASML is renowned for its expertise in manufacturing lithography machines that utilize light for imprinting patterns on silicon. This process is essential for the large-scale production of microchips, which are the backbone of various technological devices, from mobile phones to household appliances.
Due to its market leadership, ASML has been recognized by experts as an indicator of the increasing divide between China and the West in their competition for access to advanced technology.
The Dutch government has been under pressure from the United States for several years to restrict the export of chips to China. In October, the Biden administration introduced new rules that build upon a comprehensive set of export controls first implemented in 2022. ASML stated that it will need to thoroughly evaluate any potential implications due to the extensive and complex nature of the regulations.
During an earnings call in October, ASML Chief Executive Peter Wennink reported that the updated export restrictions would impact approximately 10% to 15% of the company's sales to China. The company's statement on Monday also noted that after discussions with the US government, they have gained a clearer understanding of the scope and impact of the US export control regulations.
But it does not "expect the current revocation of our export license or the latest US export control restrictions to have a material impact on our financial outlook for 2023," ASML added.
