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Dutch restrictions impact ASML shipments to China

Jan, 03, 2024 Hi-network.com

ASML, a Dutch chip-making equipment manufacturer, faced setbacks as some shipments to China were cancelled due to the partial revocation of licenses. The Dutch government's move affected the delivery of NXT:2050i and NXT:2100i deep ultraviolet (DUV) lithography systems to certain customers in China. This action was perceived as a blow to China's attempts to gather related technology in anticipation of new restrictions. The impact of these actions is significant, as China has been a major market for ASML, accounting for a substantial portion of its sales.

The company acknowledged the impact in a statement, citing the recent partial revocation of a shipment license by the Dutch government. In response, Chinese Foreign Ministry Spokesman Wang Wenbin criticised what he termed as 'hegemonic and bullying behaviour' from the US, calling on the Netherlands to uphold fair market principles and honour contractual obligations.

ASML had previously been under US pressure, resulting in restrictions preventing Chinese clients from purchasing its more advanced extreme ultraviolet (EUV) lithography systems, crucial in producing cutting-edge chips. The company has a near monopoly on these machines.

Before the new restrictions took effect on 1 January, ASML had managed to apply for licenses to ship some of its less advanced DUV systems to China starting in September. The manufacturer had received three such licenses.

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