Dutch chip industry supplier ASML was no longer able to supply Chinese customers with chip production machines just weeks before export restrictions were extended. The company from Veldhoven announced that a permit for the supply of certain lithography systems had been partially withdrawn by the government.
In discussions with US authorities, the group also received further clarification on the scope and impact of US export restrictions. The withdrawal of the permits will have no material impact on the financial outlook for 2023, ASML said.
The US government insisted on a supply freeze
As Bloomberg news agency reported, citing insiders, the administration of US President Joe Biden urged an early halt to deliveries. The Chinese Foreign Ministry criticized the US for using pretexts to force other countries to impose technology blockades against China. US behavior “seriously” violated international trade rules and affected the stability of global supply chains, Foreign Ministry spokesman Wang Wenbin said in Beijing on Tuesday. The Netherlands must remain objective and respect “the spirit of the treaty”.
New export bans come into effect
Since January 1, certain export bans on so-called deep ultraviolet lithography (DUV) machines to China have been in place to cut off the country’s supply of high-tech chips. The US had previously pushed for a ban on the supply of more modern lighting systems using so-called extreme ultraviolet (EUV) technology to China.
ASML is a very important company in the chip industry. The US-China technology dispute has long weighed on investor sentiment around Europe’s most valuable listed technology group. ASML has a virtual monopoly in the field of advanced imaging systems for chip production. Customers include major chip manufacturers TSMC, Samsung and Intel. ASML’s technology can be used for the production of all semiconductors, for example for smartphones, but also for military purposes – as far as China is concerned, the US is mainly concerned about the latter.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
