Overview

• The Dutch trade minister expressed concerns that ASML's lithography tools could be used by China to develop high-value weapons systems and weapons of mass destruction.
• Despite existing export restrictions, the Netherlands has approved several licenses for exporting advanced semiconductor equipment to China, with around 20 such requests anticipated this year.
• ASML, Europe's largest tech firm, dominates the global market for lithography systems, essential for computer chip manufacturing.
• Chinese companies are expected to launch 18 new chip plants in 2024, focusing on mature and advanced process technologies.
• The U.S. is considering further restrictions on exports to China's semiconductor sector, potentially impacting ASML's business and requiring support from allies.