Dutch Government Partially Revokes ASML’s Export License for DUV Lithography Systems to China

ASML, a leading semiconductor equipment manufacturer, announced that the Dutch government has partially revoked its export license for the shipment of its NXT:2050i and NXT:2100i lithography systems to China in 2023. The Dutch government’s decision comes after the U.S. government tightened export controls on advanced semiconductors and chipmaking tools to China in October.

ASML, which is headquartered in Veldhoven, Netherlands, makes lithography machines that are essential for manufacturing the most advanced chips. The company has been barred from exporting its most advanced EUV lithography machines to China for several years and has not yet shipped a single EUV machine to the country. However, the latest export curbs affect its DUV lithography machines, which are used to make slightly less advanced chips.

ASML said in a statement that it has obtained further clarification of the scope and impact of the U.S. government’s updated export controls. The Dutch government’s export curbs impose restrictions on certain mid-critical DUV immersion lithography systems for a limited number of advanced production facilities.

ASML does not expect the revocation of its export license to have a material impact on its financial outlook for 2023. The company expects fourth-quarter net sales of between 6.7 billion euros ($7.4 billion) and 7.1 billion euros.

The U.S. government’s export controls on advanced semiconductor equipment to China have left companies scrambling to figure out what the rules mean in practice. ASML is just one of many companies that have been affected by these curbs.

The Dutch government introduced its own export curbs on advanced semiconductor equipment in June, following U.S. pressure. A spokesperson for the Dutch Ministry of Foreign Affairs was not immediately available for comment when contacted by CNBC.

ASML shares were down about 1% in morning trade.