Stating that it only reduces flexible workers periodically, Dutch chip equipment manufacturer ASML’s machinery supplier VDL denied layoff claims. Meanwhile, ASML faces the risk of losing Chinese market access due to new US export restrictions.
On Monday, VDL, an industrial machinery manufacturer and a major supplier to the Dutch computer chip equipment producer ASML, refuted claims that it is downsizing due to low demand in the semiconductor sector.
According to Business News Radio earlier, which referenced an internal memo, VDL was allegedly cutting jobs. However, a VDL spokesperson clarified that the company is only reducing a small number of flexible workers periodically and has no plans to lay off any of its 16,000 full-time employees.
VDL plays a crucial role in supplying parts for ASML’s advanced lithography systems. The company is responsible for designing and building components such as silicon wafer handlers and the ‘vessel,’ which houses lasers used in a vacuum in ASML’s advanced machines.
At the same time, a Beijing media outlet warned on Monday that the Dutch chip tool manufacturer ASML could permanently lose access to the Chinese market if it follows new US export restrictions.
Reports suggest the Dutch government plans to prevent ASML from servicing and supplying spare parts for the deep ultraviolet (DUV) lithography machines it has sold to China, due to intense pressure from Washington.
According to Bloomberg, the Prime Minister of the Netherlands, Dick Schoof, is expected not to renew the licenses for these services, which expire at the end of the year. This move could impact Chinese chipmakers like SMIC and Huawei, affecting their production of advanced semiconductors.
