ASML’s China exposure faces new questions After US warning

US reportedly raises fresh fears China may have obtained top chipmaking machine from ASML ASML produces high-tech machines that the chip manufacturing industry rely on. Officials allegedly communicated these concerns to the Dutch semiconductor manufacturing equipment producer during recent discussions.

The move by the US and its allies to curb China's access to sophisticated chip manufacturing technologies, including the Netherlands and Japan, continues and this development brings renewed scrutiny to such measures intended to hinder the transfer of high-end capabilities.

The Dutch government has for years disallowed exports of ASML's extreme ultraviolet (EUV) machines to China, and it has expanded that ban to include a subset of deep ultraviolet (DUV) machines.

ASML is the sole global manufacturer of EUV machines, a device critical for producing the most sophisticated chips powering AI, data centres, cloud computing and other high-performance applications.

The semiconductor sector is a growing focus for countries seeking to boost their economic and security prospects amid a booming global demand for computing power, with global sales expected to hit US$627.6 billion in 2024.

China is a significant market for ASML despite government export controls. It represented approximately one-third of the Dutch company's revenue in 2025, but this is forecast to fall under tightening licensing rules.

ASML's first quarter 2026 net sales were 8.76 billion and net profit was 2.76 billion. Full year revenue forecast to reach between US$36 billion and $40 billion.

Source: Bloomberg

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