Dutch government is planning on increasing export limitations of ASML to China

The Dutch government is planning to limit the export of ASML to China even further, press agency Bloomberg reported based on sources. The Cabinet will probably not renew the chip manufacturer from Veldhoven's export licenses if they expire at the end of this year. This concerns licenses for maintenance and the delivery of reserve parts of China's second most modern generation of chip machines.

When asked by ANP, ASML refused to discuss the news. The Dutch Ministry of Foreign Affairs and Developmental Help also refused to comment.

The deep ultraviolet lithography machines also known as DUV cannot function after a certain period of time if ASML does not supply maintenance services. According to Bloomberg, the United States pressured the Netherlands and other allies with an important role in the chip industry to further limit exports of advanced technology to China.

For example, the Biden administration is said to have threatened a measure allowing the US to block the sale of products that contain US technology. This is also the case with ASML machines.

The US has been trying to limit China's access to the most advanced chip technology for a longer time, which, according to the United States government, is needed for national security. ASML was never allowed to sell its newest chip machines to China. The Hague also imposed export restrictions last year on the company for specific machines of the second most modern generation.

China is an influential sales market for ASML. In the second quarter, the company earned nearly half its revenue from the country.

ASML shares gave up some of their gains on the Amsterdam stock exchange shortly after the Bloomberg report appeared, but the share price was around 2.8 percent higher on Thursday afternoon.