ASML Faces New Dutch Export Controls

ASML CEO Christophe Fouquet anticipates increased pressure from the US on allies to impose further restrictions on semiconductor technology exports to China. This move is part of ongoing efforts to limit China's advancement in the semiconductor sector, particularly in AI and advanced chip-making technologies. The Netherlands, home to ASML, has been caught between US demands and its significant market presence in China, which has been its largest market for five consecutive quarters. Despite focusing on mainstream semiconductors, which are less tied to national security, ASML’s inability to sell its most advanced EUV machines to China keeps the country technologically behind by 10 to 15 years. Fouquet questions the appropriateness of these restrictions from a European perspective, as the geopolitical landscape continues to evolve. The Dutch government has introduced new export controls, requiring ASML to seek export licenses for some equipment sales to China, further complicating its business relations.