The regulations impose vital restrictions on ‘computational lithography’—software that optimizes lithography machines from ASML and Japanese companies Nikon and Canon.
After the Biden administration shocked the entire world by imposing export restrictions on 140 Chinese firms, ASML Holdings, the Netherlands-based chip equipment maker, believes that the new export restrictions won’t be applied to them or rather affect its current fiscal guidance. On the other hand, the Netherlands government also stated that it firmly abides by the US restrictions on China regarding national security. Hence, they are studying the latest rules in detail.
The company has reaffirmed its financial guidance 2025, projecting group sales between €30 billion and €35 billion. Notably, the company anticipates that approximately 20 percent of these sales will originate from China, a significant decrease from the nearly 50 percent contribution observed in recent quarters. USA’s stringent export control measures have limited ASML’s ability to supply its most advanced lithography systems to Chinese customers.
The U.S. Department of Commerce expanded its Entity List, adding nearly 140 Chinese technology companies, including subsidiaries of SMIC, thereby imposing stringent export controls on them. These controls extend to advanced semiconductor manufacturing equipment and software, such as ASML’s deep ultraviolet (DUV) lithography systems. The Dutch government, aligning with U.S. policies, has mandated that ASML obtain export licenses for shipping its most advanced DUV immersion lithography tools to China, which will limit the latter’s access to technology capable of producing sub-5nm chips.
In September 2024, the Dutch government expanded export licensing requirements for ASML’s chipmaking equipment, aligning its policies more closely with U.S. efforts to limit China’s access to advanced technology. This move underscores the Netherlands’ commitment to safeguarding national security while maintaining autonomy in its policy decisions. These actions reflect the Netherlands’ shared concerns with the U.S. regarding the uncontrolled export of advanced semiconductor equipment and highlight the country’s approach to independently evaluating and mitigating national security threats.
Meanwhile, Applied Materials, another global leader in semiconductor equipment manufacturing, announced on Tuesday that it is maintaining its first-quarter fiscal 2025 outlook despite the U.S. government’s recent tightening of semiconductor export restrictions to China. The company stated that its “initial assessment of the impact” of these new regulations indicates no need to alter its financial projections.
