The Netherlands decides to postpone their export restrictions on ASML DUV machines for a while. This allows the company to fulfill ongoing contracts.

Dutch company ASML is allowed to supply advanced DUV machines to China until 2024. The Deep UVDevices are essential for building complex microchips. The most modern chips are already built on production lines Extreme UV devices with even higher resolution, but before that, the export ban came into effect earlier. In principle, the new export restrictions would start from today, but that is not the case.

ASML still has ongoing contracts with Chinese companies. A transition period running through the end of this year would help ASML better meet them. It’s unclear how many advanced DUV devices will roll off the assembly line by January 1, 2024.

trade war

The restrictions are at the request of the United States. The Americans have been waging a trade war against China since the Trump administration, which has also continued under President Biden. The aim is to prevent China from becoming a technological superpower with the same capabilities as the West. On the one hand, therefore, the US prohibits the export of advanced microchips, on the other hand, the tools used to manufacture these microchips themselves are also restricted.

ASML informs NOS that many DUV machines have been shipped to China in recent months. The company said it was clearing a backlog. Other customers would have pushed back their orders. This situation gives ASML an opportunity to generate as much revenue as possible from Chinese DUV sales before this money tap is closed in 2024.