Dutch Government Partially Revokes ASML’s Export License

Dutch Government Partially Revokes ASML's Export License | The Enterprise World

(Source – Verdict)

Dutch Government Partially Revokes ASML’s Export License for Key Chipmaking Tools Amidst Heightened Global Semiconductor Export Controls

In a recent development, ASML, a prominent player in the production of machinery crucial for manufacturing cutting-edge semiconductors, has faced restrictions from the Dutch government regarding the export of specific tools to China, the company reported.

This machine is instrumental in creating advanced chips

ASML, headquartered in Veldhoven, Netherlands, disclosed in a statement on Monday that the Dutch government had partially revoked the license for the shipment of its NXT:2050i and NXT:2100i lithography systems in 2023. Consequently, ASML’s shares experienced a 2.6% decline in value on Tuesday.

The lithography machines offered by ASML play a pivotal role in the chip manufacturing process, with one of its key products being the extreme ultraviolet (EUV) lithography machine. This machine is instrumental in creating advanced chips, including those utilized in products like Apple’s iPhone. ASML has been prohibited from exporting EUV machines to China for several years, and as of now, not a single EUV machine has been shipped to China.

The revocation of the shipping license follows the tightening of export controls

Another type of tool provided by ASML is the immersion deep ultraviolet (DUV) lithography machine, used in the production of slightly less advanced chips. The NXT:2050i and NXT:2100i, subjected to the Dutch government’s recent export restrictions, fall under the category of DUV lithography machines.

The revocation of the shipping license follows the tightening of export controls on advanced semiconductors and chipmaking tools to China by the U.S. government in October. ASML mentioned in its statement that recent discussions with the U.S. government provided further clarification on the scope and impact of the October export control updates. These controls specifically target certain mid-critical DUV immersion lithography systems for a limited number of advanced production facilities.

The Dutch government, influenced by U.S. pressure, had introduced its own export restrictions in June on advanced semiconductor equipment. However, as of now, the spokesperson for the Dutch Ministry of Foreign Affairs has not provided immediate comments on the matter when contacted by CNBC.

ASML emphasized in its statement that it does not anticipate the revocation of its export license, in line with U.S. export controls, to significantly impact its financial outlook for 2023. The company had previously forecasted fourth-quarter net sales ranging between 6.7 billion euros and 7.1 billion euros ($7.34 billion and 7.78 billion). The ongoing geopolitical dynamics surrounding semiconductor exports continue to shape the landscape for companies like ASML, as they navigate through evolving regulations and international pressures.

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