Last updated on March 21st, 2024 at 07:26 am

The Dutch company attributed the decision to a change in licensing, following an initial report linking it to US pressure

A Dutch manufacturer reportedly halted shipments of high-tech microchip machinery to China following pressure from the US government. ASML, a crucial player in the global semiconductor manufacturing supply chain, had its export licenses revoked by the Dutch government before three chip-making machines could be shipped to China. The company specializes in extreme ultraviolet lithography systems (EUVs), utilizing lasers to aid in chip circuitry creation. This technology is utilized by major chip producers like Samsung and Intel, with applications ranging from smartphones to advanced military hardware.

According to Bloomberg, ASML decided to halt the shipment of its most advanced machines following a request from the Biden administration. However, a subsequent statement from the company clarified that the Dutch government had “partially revoked” a license for the shipment of two types of lithography machines, affecting a “small number of customers” in China. The statement added that ASML had received further clarification on the scope and impact of US export control regulations during discussions with the US government. This pressure from the US comes as part of efforts to curb China’s semiconductor knowledge and production expansion, urging allies to limit technology associated with semiconductor manufacturing.

Last October, the Biden administration implemented new restrictions to prevent non-US companies from exporting semiconductor chips and lithography machines containing US-made parts and technology. In July of the same year, the Dutch government agreed to impose restrictions on the sale of ASML’s deep ultraviolet (DUV) lithography machines, which are the second most advanced machines the company produces, following pressure from the US. These restrictions officially took effect on Monday.

In response to the latest halt in ASML orders, Chinese foreign ministry spokesperson Wang Wenbin called on the Netherlands to remain impartial, respect market principles and the law, take practical actions to protect the common interests of both countries and their companies, and maintain the stability of international supply chains. He criticized the US for its role in encouraging this action, describing it as “hegemonic and bullying behavior.” ASML stated that it does not anticipate the license revocation to have a significant impact on its financial outlook for 2023.