Amsterdam — Shares of computer chip equipment maker ASML dipped on Tuesday, the first trading day after US legislators last week proposed a law that could further restrict the company’s sales to China.
Analysts said the bill, if enacted by the US and enforced by the Netherlands, could lead to the first new restrictions on ASML since September 2024, blocking sales and the servicing of its DUV immersion lithography tools to customers in China.
ASML is the dominant maker of such tools that are used to create the circuitry of chips, though it faces competition from Nikon of Japan and Chinese firm SMEE.
“We view this prospect negatively,” Citi analysts said in a note. Shares dropped by as much as 4.7% before recovering slightly. They were 4.1% lower at €1,114 in Amsterdam in morning trade. ASML declined to comment and the Dutch government said it is not up to the Netherlands to comment on proposals by the US legislature.
Global markets
Opinions on the financial impact varied. ASML has forecast its sales in China at 20% of its total in 2026, but sales of older machines would not be affected.
Analyst Michael Roeg of Degroof Petercam estimated the new rules could weaken ASML sales by a “single digit” percentage.
JPMorgan analyst Sandeep Deshpande said ASML’s earnings per share could be reduced by up to 10%. He also said ASML’s sales to other regions would “increase considerably, though not offsetting the lost China revenue,” as non-Chinese chipmakers increase their capacity to compensate. The biggest impact would be on global markets, he wrote in a note.
“The current tight capacity for chips in multiple markets would get much worse with these restrictions,” he said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.