ASML finds itself in a tough spot as the Dutch government revokes its export license for crucial machinery intended for Chinese markets.

Dutch semiconductor The Dutch technician firm ASML disclosed that the government has made the decision to partially retract its export license, which affects the delivery of specific chip manufacturing tools to China.

The revoked license specifically pertains to the delivery of advanced chip lithography systems, NXT: 2050i and NXT: 2100i, that were scheduled for export in 2023. ASML has recognized that this situation will minimally affect some of its clientele in China.

The restriction will obstruct ASML’s plans to deliver three state-of-the-art deep ultraviolet lithography machines to its partners in China, which are essential for various sectors ranging from smartphones to sophisticated military equipment. semiconductor production This announcement was made in conjunction with an official update regarding the adjustments to export permissions from Dutch regulatory bodies.

While ASML has not specified the number of units impacted by this retraction, the company insists that it won’t significantly alter its financial performance for 2023, deeming any potential financial repercussions as manageable.

The firm expressed, 'We do not foresee any substantial effects from the revocation of our export license or the recent U.S. restrictions on our financial forecasts for 2023,' as indicated in their announcement.

China Responds to Export Restrictions press release .

On January 2, China urged the Netherlands to uphold market principles after the Dutch government pulled the export license for ASML’s equipment bound for China.

Wang Wenbin, spokesperson for the Chinese Foreign Ministry, appealed to the Netherlands to act fairly, acknowledging market rules and legal frameworks, and to safeguard the mutual interests of both nations and their businesses while ensuring the integrity of global supply chains, as reported by Reuters.

In the backdrop of these events, the U.S. government introduced new regulations in 2023, enabling Washington to restrict exports of ASML’s Twinscan NXT1930Di machine when utilizing American-made components.

Following the increased export limitations from the U.S., the Dutch government enhanced its own restrictions targeting China, specifically focusing on DUV machines, marking an effective date of January 1.

Additionally, ASML mentioned that it has recently communicated with U.S. authorities regarding the implications and extent of export control laws, although details surrounding those discussions were not made public. export controls It is essential to mention that the information shared on this page is not meant to serve as legal, tax, investment, or financial advice. Always invest what you can afford to lose and consult independent financial advisers if you have any uncertainties. For more insight, please refer to terms and conditions as well as assistance resources from the issuer or advertiser. MetaversePost is committed to presenting precise and unbiased information; however, market circumstances may change without prior notice.

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