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ASML CEO says US restricts servicing some China equipment, won't hurt earnings
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ASML CEO says US restricts servicing some China equipment, won't hurt earnings
Apr 24, 2024 7:21 AM

AMSTERDAM, April 24 (Reuters) - The outgoing chief

executive of top semiconductor equipment supplier ASML

said on Wednesday that the U.S. government will prevent the

company from servicing some machines it has previously sold to

Chinese customers in some cases.

Such restrictions "will not have a significant effect on the

2025 to 2030 financials, because it will be a limited number" of

Chinese plants that are affected, Peter Wennink said.

ASML, the largest maker of equipment used to manufacture

computer chips, has faced a series of restrictions and licensing

requirements from the U.S. and Dutch governments in selling its

more advanced equipment lines to Chinese customers.

The restrictions are part of Washington's campaign to slow

Beijing's military advances and undermine its ability to

manufacture its own chips.

In April, the U.S. government began pressuring the Dutch

government to prevent ASML from servicing some of the billions

of euros worth of tools it has already sold to Chinese

customers, including in some cases equipment whose export was

approved or that had been sold before new restrictions were

introduced in 2023.

China was ASML's second-largest market by sales in 2023 and

about 20% of the company's global revenues come from servicing

its installed base of tools.

While the Netherlands oversees its own export policies, and

ASML has said it expects to be able to continue to service

"most" Chinese customers through the end of this year, Wennink

said that was not true in all cases.

"We can service them, but not with U.S. content, with spare

parts that come out of the U.S. that are under export control,"

Wennink said.

U.S. rules cover the segment of ASML's product range known

as "immersion" deep ultraviolet (DUV) lithography tools.

"But that's for a limited number of systems. But we can

install them. Anything else that we have sold, we can install

and we can service," Wennink said.

Wennink was speaking at the company's annual general

meeting, where he is due to retire and be replaced by veteran

manager Christophe Fouquet, pending shareholder approval.

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