US Calls on Netherlands to Further Restrict ASML's China Operations
Heightened Pressure on Dutch Chip Equipment Maker
New Export Bans on Servicing Machines Sold to China
The United States government has intensified its efforts to curb China's access to advanced semiconductor technology. A key focus of this strategy is to limit the servicing of chip-making machines sold by Dutch company ASML Holding NV (ASML) to Chinese customers.
Current regulations, imposed in 2019, already prohibit ASML from selling its most advanced extreme ultraviolet (EUV) lithography machines to China. However, the company continues to sell less sophisticated deep ultraviolet (DUV) lithography machinery to Chinese customers.
The Biden administration is now reportedly planning to pressure the Netherlands to further restrict ASML's activities in China, including limiting the servicing of DUV machines. This move would significantly impact ASML's operations, as China was its second-largest market in 2023 and accounted for approximately 20% of its total revenue through the servicing of installed machines.
ASML's CEO, Peter Wennink, has acknowledged that the company would comply with any new export restrictions. However, analysts believe that the tightening regulations could have a significant impact on ASML's business and strain relations between the Netherlands and China.
The Dutch government has previously resisted US pressure to fully cut off ASML's sales to China. However, with the Biden administration increasing its efforts to limit China's access to advanced chip technology, it remains to be seen whether the Netherlands will be able to withstand the growing pressure to further restrict ASML's activities.
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