The Dutch government revoked export licenses from chip machine maker ASML to China last year. The company reported this on Tuesday a press release. The delivery freeze was introduced before a package of US trade restrictions came into effect in 2024, restricting ASML from trading its second-most modern chip machine model to China. A “small number” of Chinese customers are said to have been affected by the trade measure.
According to ASML, the intervention is no reason to fear for the company’s financial results in 2023. ASML was the only decliner on the Amsterdam stock exchange this morning; the share lost 1.6 percent of its value. In the first quarter of 2023, China was responsible for 46 percent of ASML’s turnover.
The advanced chip machines that ASML makes are worth tens of millions each, and are very valuable to the global tech industry. The chips are used for technological innovations that support the economy, but are also essential in the production of operating systems for weapons, for example.
Geopolitical interests
ASML is the market leader in this valuable industry, and therefore the Veldhoven company is of great geopolitical importance to the United States, which is trying to slow down China’s military development. American security chief Jake Sullivan approached the Dutch government about this last year. ASML writes in its message that it “has received more clarity about the scale and impact of American export regulations during recent discussions with the American government.”
China has called on the Netherlands to maintain the law, the business environment and market stability of the two countries.
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