Alexander Lewis 
Jan 02, 2024
ASML, a renowned lithography expert, faced a setback as the Dutch government revoked its export license, halting the shipment of chip-making systems to China.
In a statement released on its website, ASML acknowledged the recent partial revocation of the license for shipping NXT:2050i and NXT:2100i lithography systems to China, affecting a small segment of customers.
Renowned for its extreme ultraviolet lithography (EUV) photolithography machines crucial for producing cutting-edge 3nm and 5nm chips, ASML is the exclusive supplier worldwide.
During the third quarter of 2023, Chinese companies acquired 46 percent of ASML's lithography systems, generating approximately $3.7 billion in revenue from July to November.
Reportedly, the Dutch government's decision to cancel the shipment stemmed from pressure from the US government, entangled in a trade war with China. The objective was to curtail China's access to advanced technology, aimed at preventing military modernisation and human rights abuses.
Ongoing geopolitical tensions have led to impending restrictions, spearheaded by the US government, which will further inhibit the export of foreign-made equipment, containing US parts, to China. This includes ASML's second most advanced machines, deep ultraviolet (DUV) lithography systems, with specific export bans targeting six Chinese chipmaking facilities.
Despite these challenges, ASML remains optimistic about its financial outlook for 2023, stating that the current export license revocation and the latest US export control restrictions are not expected to significantly impact the company's projections.
