The Dutch government announced on Friday that it will expand export control measures on advanced semiconductor manufacturing equipment, meaning that more types of semiconductor manufacturing equipment will be subject to restrictions imposed by the Dutch government's authorization requirements. Before the US stock market opened, ASML's stock price fell by 1%.
It is reported that the Dutch government has requested ASME to apply for a license for some of its machines from The Hague (the capital of South Holland province in the Netherlands) instead of the US government. The government will evaluate the application based on specific circumstances, and the new regulations will come into effect on September 7, 2024.
Some analysts believe that the control measures introduced by the Netherlands are not an export ban, but will be evaluated based on specific export applications. In addition, the Netherlands is attempting to regain control over exports of some ASML equipment from the United States and align policies between the two countries.
The decision is based on security considerations, as technological advancements bring security risks associated with exporting specific manufacturing equipment, especially in the current geopolitical context, "said Dutch Minister for Foreign Trade and Development Cooperation, Klewo
Klewo added, "The Netherlands has a unique leading position in the semiconductor field, which requires a certain level of responsibility, and we attach great importance to it. The Dutch semiconductor industry needs to have a clear understanding of the policy direction that can be expected in the future. The Dutch government has taken a cautious and targeted approach in formulating and implementing policies to minimize interference with global trade flows and value chains
In the latest statement from the Dutch government, no specific country has been identified as the main focus of semiconductor equipment export restrictions.
Subsequently, ASML's official website announced that due to new requirements, ASML will need to apply for an export license for the lithography machines TWINSCAN NXT: 1970i and 1980i from the Dutch government instead of the US government. TWINSCAN NXT: 2000i and subsequent immersion DUV systems already have Dutch export license requirements. It is expected that the new regulations will not have any impact on our financial prospects for 2024, nor will they have any impact on the long-term prospects conveyed during the investor date in November 2022
ASML is one of the most important semiconductor companies in the world, headquartered in the Netherlands. The lithography machines manufactured by the company are necessary for producing the most advanced chips.
ASML's goal is to achieve sales of 40 billion euros by 2025 and 60 billion euros by 2030.
The previous year, the Dutch government implemented significant restrictions on the export of advanced semiconductor equipment for the first time, and the expanded restrictions announced now are further tightening on the existing basis.
In fact, as early as October 2023, the United States began unilaterally blocking the export of some mid-range equipment from ASML (1970i and 1980i) on the grounds that they contained some American parts, which sparked questioning from the Dutch parliament. Christopher Fukai, CEO of ASML, opposes US restrictions on ASML's equipment exports, stating that such actions are unwise and harm Western interests.
Dutch Prime Minister Dick Schoff recently stated that when making decisions, the Dutch government will consider the economic interests of ASML and weigh the benefits and risks. For the Netherlands, ASME is a very important innovative industry and should not suffer losses under any circumstances.