ASML Shares Fall After Report Suggests US Wishes to Restrict Sales to China

[Pelican Press 0]

ASML Shares Fall After Report Suggests US Wishes to Restrict Sales to China

Shares in ASML Holding, a key supplier of equipment to semiconductor makers, fell on Tuesday following a Bloomberg News report that the US government wants to restrict the company from selling equipment to China.

ASML has already been unable to ship its most advanced tools to China, but the

This is the hidden content, please

• Sign In
• or
• Sign Up

said Washington would also restrict the ***** of slightly older machines, citing “people familiar with the matter.”

A spokesperson for ASML said the company was unaware of any policy change.

“The discussion is not new,” the spokesperson said. “No decisions have been made, and we do not want to speculate or comment on rumours.”

ASML’s US shares sank 7.2 percent in the wake of the report.

Other chip gear makers also lost ground, with Lam Research off 3.6 percent and Applied Materials losing 2.4 percent.

China is ASML’s third largest market, after Taiwan and South Korea, representing around 16 percent of 2021 sales, or EUR 2.1 billion (nearly Rs. 17,100 crore).

ASML has a near monopoly on the manufacture of lithography systems, machines vital for chipmakers such as Intel, TSMC and Samsung. Lithography systems cost hundreds of millions of dollars apiece and use focused beams of light to create the circuitry of computer chips.

Lithography and other semiconductor manufacturing equipment require an export license, as computer chips are considered “dual use” technology, with military as well as commercial applications.

Since 2019, the Dutch government, in agreement with the US, has not granted a license for ASML to sell its most advanced machines, which use “extreme ultraviolet,” or EUV, light waves, to ******** chipmakers.

ASML still sells “deep ultraviolet,” or DUV, machines, to ******** customers.

The majority of chips worldwide are manufactured with DUV lithography. Restricting their ***** to China would be highly damaging for China’s chip industry and would likely worsen a global semiconductor shortage.

In 2021, the US National Security Commission on Artificial Intelligence — led by former

This is the hidden content, please

• Sign In
• or
• Sign Up

CEO Eric Schmidt — recommended that the US Departments of State and Commerce should push allies to deny China access to top DUV, EUV and related tools.

© Thomson Reuters 2022

 

---

 

Affiliate links may be automatically generated – see our ethics statement for details.

This is the hidden content, please

• Sign In
• or
• Sign Up

asml shares fall report us wishes restrict sales china asml,chipmaker,us,china,intel,tsmc,samsung
#ASML #Shares #Fall #Report #Suggests #Wishes #Restrict #Sales #China

This is the hidden content, please

• Sign In
• or
• Sign Up