The Dutch government announced new export control regulations on Friday, which will require ASML Holding (ASML.US) to apply for licenses for some machines from The Hague instead of the US government.
According to the Futu Financial News app, the Dutch government announced new export control regulations on Friday, which will require ASML Holding (ASML.US) to apply for licenses for some machines from The Hague instead of the US government. The new regulations will take effect on September 7, 2024 and will apply to ASML's old deep ultraviolet (DUV) immersion lithography machines exported to China. ASML responded that the new regulations are not expected to have any impact on the company's financial prospects or long-term outlook in 2024.
ASML Holding is the only company in the world that produces advanced lithography machines. These lithography machines are used to produce high-end chips for various fields, from electric vehicles to military equipment. The Dutch government has already restricted ASML from exporting more advanced lithography machines to China. The new export regulations will affect the export of ASML's TWINSCAN NXT:1970i and 1980i DUV immersion lithography machines. The export of these two lithography machines is restricted by the United States.
ASML spokesperson Monique Mols stated in an email statement that the technical changes in the licensing process are not expected to have any impact on the company's financial prospects or long-term sales objectives in 2024.
ASML's goal is to achieve sales of 40 billion euros (44.5 billion US dollars) by 2025 and 60 billion euros by 2030.
Fouquet added that the greater the pressure imposed by the US, the greater the resistance. "As a company, we hope to gain some clarity and stability."
As of writing, ASML shares fell more than 1% in premarket trading.