The Dutch government has partially revoked Dutch semiconductor machinery manufacturer ASML Holding NV (NASDAQ:ASML)’s export licence to China, a move that will impact the shipment of the company’s highly specialised lithography devices, the NXT:2050i and NXT:2100i.
The export restrictions follow similar sanctions imposed by the US government on Nvidia and other microchip developers in a bid to curb China’s advancement of artificial intelligence (AI) technology.
Western governments are concerned about the military implications of Chinese AI advancement.
In 2023, the US implemented new regulations empowering the government to limit the export of ASML's ‘Twinscan NXT1930Di’ equipment if it incorporates components originating from the US.
“We do not expect the current revocation of our export licence or the latest US export control restrictions to have a material impact on our financial outlook for 2023,” ASML said in a statement.
“In recent discussions with the US government, ASML has obtained further clarification of the scope and impact of the US export control regulations. The latest US export rules impose restrictions on certain mid-critical DUV immersion lithography systems for a limited number of advanced production facilities.
“ASML is fully committed to comply with all applicable laws and regulations including export control legislation in the countries in which we operate.”
ASML has a dominant position in the market of lithography systems, which are crucial for print microchip circuitry.
China is a major market for ASML, having accounted for nearly half of all sales in the third quarter of 2023. However, these export controls are only expected to impact what ASML said was “a small number of customers in China”.