Thursday, November 21, 2024

ASML’s Export of Critical Chipmaking Tools to China Blocked

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A company named ASML, based in the Netherlands, creates very important machines needed to make the most advanced computer chips. These chips are used in devices like the Apple iPhone. ASML’s machines, called lithography machines, are a crucial part of the chip-making process. There are two types of these machines: extreme ultraviolet (EUV) lithography for high-end chips and immersion deep ultraviolet (DUV) lithography for slightly less advanced chips.

Recently, ASML faced some challenges because the Dutch government restricted the export of certain lithography machines to China. This decision followed similar restrictions imposed by the U.S. government in October, affecting the export of advanced semiconductors and chip-making tools to China. ASML mentioned that the Dutch government partially revoked the license for shipping some of its lithography systems in 2023.

It’s important to note that ASML has been unable to export its EUV machines to China for several years. The machines affected by the recent Dutch government decision are the DUV lithography machines. ASML communicated that, after discussions with the U.S. government, it gained a better understanding of the impact of the updated export controls. These controls limit the export of certain lithography systems for specific advanced production facilities.

Despite these challenges, ASML does not expect a significant impact on its financial outlook for 2023. The company had previously projected net sales between 6.7 billion euros ($7.4 billion) and 7.1 billion euros for the fourth quarter. This situation highlights the complex international regulations and their impact on companies involved in advanced semiconductor manufacturing.

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