ASML Holding NV said the latest update to the U.S. export restriction list is aimed at preventing China from obtaining highly advanced semiconductor technology, which will reduce its sales to Asian countries in the medium to long term. Europe's most valuable technology company said in a statement that the new rules "may affect the geographical distribution of its system sales in the medium to long term". The United States is expanding the scope of restricted manufacturing equipment, senior administration officials told Bloomberg on Tuesday.
ASML expects the new rules to apply to a small number of Chinese factories that produce advanced semiconductors. The financial outlook for this year is not expected to be materially affected, while long-term guidance through 2030 is not expected to be affected either. The tech giant is expected to report third-quarter earnings on Wednesday morning.
ASML said it would seek further clarification from U.S. authorities on the scope of the new regulations. Earlier this year, ASML was already the target of U.S. restrictions on the export of cutting-edge technology to China, one of the Veldhoven-based company's biggest markets.
Under pressure from the Biden administration, the Dutch government has imposed restrictions on the export of some immersion deep ultraviolet lithography machines to China. The restrictions will take full effect on January 1. Immersion deep UV lithography machines are ASML’s second most advanced product line. The company is already restricted from selling its most advanced systems, extreme ultraviolet lithography machines, in the country.