ASML Restricts the Export of Chip Manufacturing Tools

The United States and the Netherlands are actively implementing new restrictions on the sale of chip-making equipment, continuing their efforts to prevent using their technology for military purposes in China.

As reported by Reuters, the company ASML Holding, the leading Dutch supplier of equipment for the production of semiconductors, will further limit the export of its tools to China. At the same time, the US should deny even more Dutch equipment from reaching Chinese factories.

ASML holds the title of Europe’s largest chip company due to its significant role in lithography, a crucial step in the computer chip manufacturing process.

The Dutch government and ASML refrained from commenting, mirroring the US Department of Commerce’s silence. In the prior year, the US imposed export restrictions on US chip-making tools sent to China.

National security reasons limit the supplies of tools manufactured by American companies Lam Research and Applied Materials. At the same time, the US simultaneously requires manufacturers from other countries to introduce similar restrictions.

Japanese chip equipment companies Nikon Corp and Tokyo Electron Ltd. adopted rules to restrict the export of 23 types of semiconductor manufacturing equipment, which will take effect on July 23.

The Chinese embassy in Washington condemned the move, saying that the US “deliberately blocked and tripped up Chinese companies, forcibly relocated industries and insisted on separation,” and that Beijing would closely monitor developments and firmly protect its interests.

The US Is Cutting Off Beijing’s Access to Advanced Chips

The US administration is considering new restrictions on the export of artificial intelligence chips to China as concerns grow about the power of the technology in the hands of America’s biggest rivals.

According to unnamed sources cited by the Wall Street Journal, the administration in Washington intends to introduce additional restrictions on the supply to China of American equipment and semiconductors for artificial intelligence AI. They are considering the possibility of banning the delivery of cloud technologies for AI.

These plans are said to be motivated by US authorities’ concerns that equipment from Nvidia and other manufacturers could be used for military purposes. The US Department of Commerce, Nvidia and AMD have yet to comment on the possibility of introducing new restrictions.

However, the market reacted to this information, so in over-the-counter trading, Nvidia’s shares fell by 4.2 per cent, while the value of AMD’s shares fell by 3.4 per cent. Intel also saw its shares fall 1.2 per cent.