ASML Holding NV said new updates to US export curbs that are designed to block China’s access to highly advanced semiconductor technology will lower its sales to the Asian country in the medium to long term.
(Bloomberg) — ASML Holding NV said new updates to US export curbs that are designed to block China’s access to highly advanced semiconductor technology will lower its sales to the Asian country in the medium to long term.
The new rules will “likely impact the regional split of its systems sales in the medium to long term,” Europe’s most valuable technology company said in a statement. The US is expanding the scope of manufacturing gear subject to restrictions, senior administration officials told Bloomberg on Tuesday.
ASML expects the new regulations to apply to a limited number of Chinese factories that produce advanced semiconductors. It doesn’t expect a material impact on its financial outlook for the year, while longer-term guidance through 2030 is also unaffected. The tech giant is expected to report third-quarter earnings on Wednesday morning.
ASML shares were trading 0.4% higher at as of 4:40 p.m. local time after sliding as much as 2.3%.
ASML said it will seek further clarification from US authorities on the scope of the new regulations. Earlier this year, ASML was already targeted by the US effort to curb exports of cutting-edge technology to China, one of the Veldhoven-based company’s biggest markets.
Under pressure from US President Joe Biden’s administration, the Dutch government imposed restrictions on the shipment of some immersion DUV lithography machines to China, which will take full effect from Jan. 1. Immersion DUV lithography gear is ASML’s second-most advanced product line. The company is already restricted from selling extreme ultraviolet machines, its most advanced systems, in the country.
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