The Dutch government has partially revoked semiconductor equipment maker ASML’s export license to China for two of its systems used in manufacturing advanced chips.
“A license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023 has recently been partially revoked by the Dutch government, impacting a small number of customers in China,” said ASML in a statement.
NXT:2050i and NXT:2100i are deep ultraviolet lithography machines used in the volume production of the most advanced logic and memory chips. The company said it does not expect the move to have a material impact on its financial outlook for 2023.
ASML has been restricted by the Dutch government from exporting its extreme ultraviolet lithography machines to China, in a bid to contain China’s chip making tech. ASML has not shipped the equipment to China so far.
In other news, a private survey showed manufacturing activity in China expanded in December, at odds with a similar survey conducted by the country’s statistics bureau that reported a contraction.
The Caixin manufacturing purchasing managers’ index came in at 50.8 in December, following a 50.7 reading for November. China’s official PMI fell to 49.0 in December from 49.4 the previous month. A PMI reading above 50 indicates expansion in activity, while a reading below that level points to a contraction.
China’s manufacturing activity contracted further in December 2023, in a sign that more policy support was likely needed to revive its economy.
Official data released over the weekend showed China’s manufacturing purchasing managers’ index was at 49 in December, contracting for the third straight month and more than a Reuters poll forecast of 49.5. A PMI reading below 50 signifies a contraction. December’s PMI was also the sharpest contraction in manufacturing since June 2023, falling further from a November reading of 49.40.
In other regional manufacturing news, Australia’s factory activity in December saw its sharpest contraction since May 2020, according to private surveys from Judo Bank. The country’s manufacturing purchasing managers’ index slid to 47.6 in December, marking its 10th straight month of contraction.
These developments reflect the challenges facing the global economy and the opportunities for investors in sectors such as energy and manufacturing. For more detailed analysis and investment insight, CNBC Pro subscribers can read more here.
All this economic information is causing investment professionals to have mixed feelings about the market and whether retail investors should consider alternative assets. Some see potential in private markets, while others advise caution when dabbling in alternatives.
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Even with the challenges ahead, there are potential opportunities for investors to consider as the global economy navigates through these manufacturing and market challenges.