The US government has raised concerns directly with Dutch chipmaking equipment giant ASML over the possibility that China obtained advanced semiconductor manufacturing tools — equipment that sits at the heart of cutting-edge chip production. The alarm comes alongside a broader US push to tighten export controls on leading AI software, signaling a coordinated escalation in technology restrictions targeting China. Together, these moves suggest Washington is tightening the screws on the full semiconductor supply chain, from hardware to software.
ASML is the sole supplier of extreme ultraviolet (EUV) lithography machines, which are essential to producing the world's most advanced chips — meaning any restriction on its sales directly dents its revenue outlook. Semiconductor equipment makers and chip designers with China exposure, including ASML, AMAT, LRCX, and KLAC, face the risk of further sales bans that could meaningfully reduce their addressable market. AI software export controls compound pressure on US tech firms with China-facing cloud or model licensing businesses.
Watch for: ASML quarterly earnings and guidance update (next quarterly earnings); US Commerce Department formal rule updates on export controls (~ongoing); any ASML public statement or regulatory filing confirming or denying the US concerns.
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