China Warns ASML It Could Lose Its Market Over New US Export Rules

China’s Warning to ASML

China has warned that ASML might be shut out of the Chinese market permanently if it follows new US export rules. These rules could prevent ASML from servicing and supplying spare parts for its deep ultraviolet (DUV) lithography machines sold to China.

Impact of US Export Restrictions

The Dutch government is considering these restrictions due to pressure from the US, which wants to limit China’s access to advanced chip technology. Losing the Chinese market could be a big blow for ASML, which relies on China for almost half of its sales.

ASML’s Role in the Chip Industry

ASML is crucial in making semiconductor equipment, especially DUV machines. Even though ASML hasn’t sold its most advanced machines to China, its major role in chip production makes it vulnerable to these geopolitical issues.

Possible Effects on ASML

If ASML loses access to the Chinese market, it could face serious financial losses and lose its strong position in the global chip industry. This could also lead to retaliatory actions from China.

China’s Chip Industry Goals

China is heavily investing in its semiconductor industry to catch up with leaders like Taiwan’s TSMC. This investment is aimed at building its own technology and reducing reliance on foreign tech.

Wider Industry Impact

China’s threat shows how global trade and technology politics can affect companies like ASML. Tech firms need to manage these geopolitical tensions while trying to keep their market positions.