The Netherlands has become the latest Western country to propose a ban on semiconductor technology to China in the interests of national security.
New restrictions mirror those announced by the US in October that were designed to slow down China’s military and technological advances.
Japan and the Netherlands are major chip suppliers and the US had been urging them to join with it to make its ban more effective.
Netherlands-based ASML is Europe's largest tech firm and a major supplier to semiconductor manufacturers globally.
In a statement, ASML said it expects to have to apply for licences to export its most advanced chips but added any controls won’t affect 2023 earnings.
According to Reuters, ASML has never sold its most advanced machines to customers in China, with the bulk of its sales going to less advanced chipmakers based there.
Dutch Trade Minister Liesje Schreinemacher said the restrictions will be introduced before the summer.
"Because the Netherlands considers it necessary on national security grounds to get this technology into oversight with the greatest of speed, the Cabinet will introduce a national control list," he said in a letter to the Dutch parliament.
Japan is expected to issue an update on its chip equipment export policies as soon as this week, Reuters added.
Relations between the US and China have become increasingly frayed due to the situation in Taiwan and fears that the Beijing government is planning an invasion.
Reports that China is considering sending substantial amounts of arms to Russia to support its attack on Ukraine have also ratcheted up tension with the US.