AMSTERDAM (Reuters) – Dutch computer chip equipment maker ASML on Wednesday said it expected new U.S. and Dutch export restrictions to reduce its potential sales to China by some 10-15% this year after they hit record levels in 2023.
CFO Roger Dassen also confirmed that two older tools not covered by Dutch licensing requirements would be directly restricted from China by U.S. rules.
“We should now expect that for 2024 we will not get export licences [from the Dutch government] for shipment into China for, let’s say, advanced immersion, so NXT:2000i and up, tools,” Dassen said.
“And we should also expect for a handful of fabs not to get export licences for China for NXT:1970i and NXT:1980i immersion tools,” due to U.S. direct restrictions imposed in October.
Dassen said he still expects demand from China for older equipment to remain “very, very solid. It was solid last year. We expect it to be solid this year and also on a go-forward basis.” Following a U.S.-led campaign to slow Beijing’s technological and military advances, ASML has been restricted from selling its most advanced EUV tool line in China since 2019 and has never sold an EUV tool there.
Yet China, usually ASML’s third biggest market, rose to second in 2023 accounting for 29% of its sales, or more than 6.4 billion euros, as chipmakers there continue to boost their manufacturing capacity with government support. Taiwan, home of TSMC TSMC, remained ASML’s biggest customer, Taiwan Semiconductor Manufacturing Co. TSMC, was ASML’s largest market as usual in 2023 with a 30% share, while South Korea ranked third with 24% including Samsung Electronics and memory chip maker SK Hynix. Intel and Micron of the U.S. are also important ASML customers.
(Reporting by Toby Sterling; editing by Louise Heavens and Jason Neely)
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