Business News Report
January 02, 2024

Chip Maker ASML Faces Setback as Dutch Government Revokes Machine Export License to China

In Brief

ASML announced that Dutch government has decided to partially revoke its export license for the shipment of chip-making equipment to China.

Chip Maker ASML Faces Setback as Dutch Government Revokes Machine Export License to China

Dutch semiconductor equipment company ASML revealed that the Dutch government decided to partially revoke its export license pertaining to the shipment of specific chip-making equipment to China.

The affected license specifically concerns the shipment of NXT: 2050i and NXT: 2100i chip lithography systems scheduled for the year 2023. ASML acknowledged that this development will have repercussions on a limited number of its customers in China.

It will hinder the company’s ability to ship three cutting-edge deep ultraviolet lithography machines to Chinese firms. These machines play a crucial role in semiconductor production, vital for various applications ranging from smartphones to advanced military equipment.

The company provided this information as part of an official announcement regarding the modification of its export authorization by the Dutch authorities.

However, ASML has not disclosed the exact number of affected machines due to the license cancellation. Nevertheless, the company asserts that the change will not materially impact its 2023 earnings, downplaying any significant financial consequences.

“We do not expect the current revocation of our export license or the latest U.S. export control restrictions to have a material impact on our financial outlook for 2023,” the company stated in a press release.

China Reacts to Export Control Measures

On January 2, China called on the Netherlands to “adhere to market principles,” responding to the Dutch government’s revocation of an export license for the shipment of certain equipment to China by chip machine maker ASML.

In response to the actions taken by the Dutch government, Chinese Foreign Ministry spokesman Wang Wenbin called on the Netherlands, “to be impartial, respect market principles and the law, take practical actions to protect the common interests of both countries and their companies and maintain the stability of international supply chains,” as reported by Reuters.

Delving into the context, in 2023, the U.S. government unveiled fresh regulations granting Washington the authority to limit the export of ASML’s Twinscan NXT1930Di machine if it incorporates any components of U.S. origin.

Against the backdrop of heightened export constraints imposed by the U.S. government, the Dutch government, in response to these measures, bolstered its own export controls on China in the previous year. This move specifically targeted DUV machines, the company’s second most advanced product line, effective from January 1.

Moreover, according to the company, it held recent engagements with the U.S. government concerning the extent and repercussions of export control regulations. However, specific details regarding these discussions were not disclosed.

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About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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