(Adds details, background)

By Nathan Vifflin

AMSTERDAM, July 9 (Reuters) - Dutch semiconductor

equipment supplier ASML has dropped its inclusion and

diversity targets in the U.S. to comply with regulations there,

it said on Wednesday.

The world's largest computer chip equipment maker said its

diversity and key performance targets would not apply to U.S.

employees to the extent that its inclusion and diversity

policies conflict with U.S. laws and regulations, but would

continue in all other markets.

WHY IT'S IMPORTANT

ASML joins other European firms that have acted to avoid

potential penalties from an executive order issued by U.S.

President Donald Trump that cracked down on diversity, equity

and inclusion initiatives. Trump says such initiatives are

themselves discriminatory and stifle merit.

KEY QUOTES

"ASML policy has always been to hire the best available

candidate for the job. We will continue to hire based on

qualifications and merit", ASML said in an emailed statement to

Reuters.

"Diversity targets and key performance indicators will not

apply to employees in the U.S.", the company said.

"For the Netherlands and all other markets, there are no

material changes as a result of the executive order" ASML said.

BY THE NUMBERS

Around 19% of ASML's workforce is based in the United

States, according to the company's latest annual report,

representing 8,480 full-time equivalent employees out of a

global total of 44,027.

ASML's primary DEI targets include increasing the

representation of women in senior leadership to 14% by 2026,

with a target representation of 24% women in new hires and

promotions by 2025.