ASML Allowed to Continue Supplying Advanced Chip Machines to China

This article was last updated on September 1, 2023

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ASML’s export restrictions take effect, but current contracts can still be fulfilled

New export restrictions will be implemented tomorrow for ASML, the leading chip machine maker from Veldhoven. However, the impact of these restrictions will not be felt by customers until next year. ASML has stated that it will be able to ship its advanced chip machines to China until the end of this year, while complying with the new regulations, according to a report by NOS.

During the transitional period, ASML can continue to honor its current contracts.

While ASML is restricted from shipping its newest machine, the Extreme Ultraviolet (EUV), it is permissible to continue supplying the older variant, the Deep Ultraviolet (DUV). However, the company will not disclose the number of devices involved.

Protecting Dutch Technology

In June, the Dutch government announced the export restrictions on ASML. The aim of these measures, as stated by Minister Schreinemacher for Foreign Trade, was to prevent Dutch technology from being acquired by companies or organizations that could potentially use it against the interests of the Netherlands.

ASML has received permission from the Ministry of Foreign Affairs to continue shipping its machines to China for the next four months. When asked for comment, a ministry spokesperson declined to provide any details.

In October, actions taken by the United States indicated that ASML could be subject to further restrictions. However, the Veldhoven-based company believes it has already made enough concessions with the export restrictions on EUV.

Increase in DUV Machines Shipped to China

ASML has also noted that a significant number of DUV machines have been recently shipped to China. The company states that there was a backlog in processing orders for the Chinese market in the last two years. As there was a decline in market demand, other customers postponed their orders. Consequently, ASML was able to fulfill a large number of orders from China.