Owing to the diplomatic pressure from the US, ASML has reportedly stopped shipments that are set for China, hitting it’s stock price on Monday.
While the Dutch government has issued an export license to ASML until the end of 2023, the US has reportedly reached the company to halt it’s Chinese shipments long before the ban. A Beijing spokesperson has criticized the move and asked the Dutch government to respect the law and the Chinese market.
A Big Blow to China’s Semiconductor Future
The semiconductor war is escalating more quickly than we expected, as the US government is doing everything it can to degrade China’s chip-making capabilities. The latest in this pursuit is forcing ASML to cancel shipments aimed to China, this week.
To the unknown, ASML is a Dutch company specializing in making lithography machines – that are critical for producing chips. While there are other similar players in the industry, ASML’s equipment is competitive enough to create advanced chips, putting the procurer at the top in it’s field.
Several Chinese companies are wanting to leverage ASML’s equipment for leading technologies. Well, since the US government decided to thrust China’s, the country has reportedly approached ASML to stop it’s equipment shipments aimed at China.
While trading with China was banned long ago, the Dutch government has temporarily let ASML process Chinese orders – until 31st December 2023. But “weeks before” this, the US government has pushed ASML to stop the pre-scheduled shipments to China, reported Bloomberg.
While the number of shipments is unknown, Reuters says that models NXT:2050i and NXT:2100i are affected by this move, which costs tens of millions of euros each.
Protesting against this move, a Beijing spokesperson called the Netherlands to respect the law, the business environment and the stability of it’s and China’s markets. Further, shares of ASML were down 0.7% to 677.00 euros on the first day of trading in 2024.
Other Trending News:- News
