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US wants to ban ASML Holding’s chip-making equipment from China

The Dutch foreign minister confirmed to the US that ASML Holdings NV is being prohibited from selling technology to China. This technology is used to produce most of the world’s chips.

Bloomberg reports that US officials are urging their Dutch counterparts not to sell any ASML systems.

Although these machines are a generation behind cutting-edge technology, they are still the most popular way to make certain chips for phones, computers, and robots. People claim that Washington wants to ban the sale of immersion lithography machines, the most advanced DUV technology.

 

The US is pressuring the Dutch government to extend an existing moratorium against selling such systems to Asia. However, the Dutch government has not agreed to any additional restrictions. China is the third-largest trading partner of the Netherlands, after Germany and Belgium.

ASML opposes any ban on DUV lithography equipment being sold to Chinese buyers. Bloomberg data and company information shows that 14.7% of ASML’s total revenue for 2021 was generated by facilities in China.

The Asian nation would lose its ability to access ASML products from China, which would impact its plans to be more self-sufficient in producing critical electronic components.

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