Netherlands Partial License Revocation: Blocks ASML Exports To China

ASML, a leading chip machine manufacturer based in Veldhoven, Netherlands, disclosed on Monday that the Dutch government has partially revoked an export license for the shipment of certain chip-making equipment to China. The move comes in response to US export restrictions, affecting specific lithography systems, including the NXT:2050i and NXT:2100i models. While ASML dominates the market for lithography systems, it anticipates no material impact on its 2023 financial outlook due to the license revocation and recent US export control restrictions.

China has been a significant market for ASML, ranking as its third-largest after Taiwan and South Korea in recent years. However, in the third quarter of 2023, China became the largest market, accounting for 46% of the company's sales.

The United States had previously announced new rules granting the right to restrict the export of ASML's "Twinscan NXT1930Di" machine if it contains any US parts. This move prompted Dutch lawmakers to challenge the Netherlands' Trade Minister over the unilateral imposition of rules by the US regarding another ASML chip-making machine's export to China.

ASML clarified that it has obtained further details on the scope and impact of US export control regulations through recent discussions with the US government. The company affirmed its commitment to compliance with all applicable laws and regulations, including export control legislation in the countries where it operates.