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The Netherlands has revoked the export license for the shipment of certain chip-making equipment manufactured by ASML to China. The company, known for producing the world’s most advanced chip-making machines, disclosed this information on Monday, highlighting the Dutch government’s “partial revocation” of the license for the shipment of its NXT:2050i and NXT:2100i chip-making systems in 2023.
This move has once again entangled ASML, Europe’s most valuable tech company, in the ongoing trade battle between China and the West. According to ASML, the revocation is expected to impact “a small number of customers in China,” as stated in their official announcement.
ASML’s statement follows a Bloomberg report revealing that the company canceled the shipment of some machines to China weeks before the new Dutch export restrictions took effect.
This cancellation reportedly occurred following a request from the Biden administration, underscoring the broader geopolitical dynamics influencing the tech industry.
The Biden administration had previously announced expanded export restrictions in October last year, targeting China’s semiconductor manufacturing capabilities. These measures not only affected the export of advanced chips by companies like Nvidia but also included ASML’s lithography machines containing U.S.-made parts, particularly the NXT1980Di.
The restrictions focused on the export of second-tier deep ultraviolet (DUV) chip-making machines, crucial for manufacturing less advanced chips using older processes.
In response to the revocation, ASML has sought further clarification from the U.S. government regarding the scope of the export control measures implemented by the Biden administration in 2023.
The company emphasized that it does not anticipate a “material impact” on its financial outlook for the year.ASML’s stock experienced a marginal decline, reaching $741.24 (€672.00), down approximately 1.4% on Tuesday morning.
However, the company’s market capitalization remains substantial at $300.88 billion (€272.80 billion), positioning it as the third most valuable company in the European Union, trailing only drugmaker Novo Nordisk and luxury goods giant LVMH.
This latest development underscores the intricate web of international trade relations and export controls impacting the semiconductor industry, particularly in the context of U.S.-China tensions.
ASML, as the sole producer of advanced extreme ultraviolet lithography (EUV) machines, plays a crucial role in manufacturing cutting-edge chips for major players like TSMC, Samsung, Apple, and Nvidia.
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