ASML expects limited impact of U.S. chip export restrictions
ASML, a leading semiconductor equipment maker, stated on Monday that it does not expect "direct material impact" from the latest U.S. export restrictions targeting China. The measures, announced Monday, introduce tighter controls on advanced chip technologies but are anticipated to fall within previously forecast financial outlooks.
The new U.S. measures expand the list of controlled technologies to include metrology equipment and certain software, with an immediate effect and a compliance deadline of December 31, 2024, for some provisions. Additionally, 140 Chinese entities have been added to Washington’s blacklist, requiring U.S. government licenses for any dealings.
ASML clarified in a press release that while these measures do not immediately impact its 2023 results, they might affect exports if the Netherlands enacts similar restrictions. "If Dutch authorities conduct a security review akin to the U.S., exports of DUV lithography systems to specific locations could be impacted," the company said.
The U.S. measures aim to limit China’s access to advanced chips that could bolster its military capabilities and artificial intelligence advancements. The updated restrictions also leverage the foreign direct product rule, requiring non-U.S. companies utilizing American technologies to adhere to the export controls.
Despite the tightening regulations, ASML maintained its 2024 revenue forecast of 30 billion euro to 35 billion euro, with China contributing approximately 20 percent of that figure. The company also reaffirmed its long-term projections, including a potential annual revenue range of 44 billion euro to 60 billion euro by 2030, announced during its investor day in November.
ASML reiterated its commitment to comply with all applicable laws and regulations, including export controls, while continuing to serve its global clientele.
While ASML appears to have some protection due to its reliance on Dutch licensing procedures, other European companies may also be impacted. ASM International, another Dutch semiconductor firm, said it is assessing the implications of the U.S. actions but has not yet provided further details.
The Dutch government has not indicated whether it will align with U.S. policy, stating only that it "shares concerns about uncontrolled exports of advanced semiconductor equipment."
ASML expects minimal immediate financial disruption from the measures, projecting that the revenue from its Chinese market will remain between 6 billion euro and 7 billion euro in 2024.
