ASML, a Dutch firm that specializes in manufacturing machinery required for the production of advanced chips, has been hit by export restrictions imposed by the Dutch government. The company revealed on Monday that its license for the shipment of its NXT:2050i and NXT:2100i lithography systems to China in 2023 has been partially revoked by the Dutch government.
These lithography systems are critical for the manufacturing of the most advanced semiconductors, and ASML’s export restrictions come as a result of the U.S. government’s tightened export controls on advanced semiconductors and chipmaking tools to China in October.
ASML’s shares were down about 1% in morning trade following the announcement of the export restrictions. The company, which is headquartered in Veldhoven, Netherlands, sells lithography machines that are crucial for the chip manufacturing process. These machines include extreme ultraviolet (EUV) lithography machines used to make the most advanced chips, as well as immersion deep ultraviolet (DUV) lithography machines used for slightly less advanced chips.
The tightening of export controls by both the U.S. and Dutch governments has cast uncertainty on ASML’s ability to export its machinery to China, a move that has left the company and other firms scrambling to understand the practical implications of these restrictions.
ASML stated in a release that it does not anticipate the revocation of its export license to have a significant impact on its financial outlook for 2023. The company expects fourth-quarter net sales to fall between 6.7 billion euros ($7.4 billion) and 7.1 billion euros.
The Dutch government’s decision to partially revoke ASML’s export license comes after ASML’s discussions with the U.S. government, where the company sought further clarification on the scope and impact of the updated export controls. It is clear that these curbs are having significant implications on the company’s operations and future prospects.