Shares of ASML declined Tuesday after U.S. lawmakers proposed new export restrictions that could limit sales of chipmaking tools to China. The proposed measures raised concerns about potential pressure on the company’s revenue from the Chinese market, which has already been facing tighter controls in recent years.
ASML shares listed in the Netherlands were down about 2.6% in early trading. The drop followed the introduction of the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act by a bipartisan group of U.S. lawmakers. The proposal aims to expand restrictions on semiconductor manufacturing equipment and align export policies among international partners.
The United States has introduced several export controls targeting semiconductor technology in recent years, primarily focusing on advanced chipmaking tools. ASML manufactures extreme ultraviolet (EUV) lithography machines, which are required for producing the most advanced semiconductors. The company has not exported EUV systems to China.
ASML also produces deep ultraviolet (DUV) lithography machines, which are used to manufacture less advanced semiconductors such as memory chips commonly found in consumer electronics and computing devices. Some DUV systems have already been subject to export licensing requirements. The proposed legislation could extend restrictions to additional DUV tools, which Chinese chipmakers have continued to purchase.
Earlier this year, ASML indicated that China could account for about 20% of its total sales, down from approximately 33% in 2025. Analysts said further restrictions could add pressure to this portion of the company’s business if implemented.
Stephane Houri said the proposal remains at an early stage and the scope of restrictions is still uncertain. He noted that broader limits on DUV equipment could introduce volatility in ASML’s results, potentially boosting short-term orders before any rules take effect while affecting performance over the medium term.
Ben Barringer said the proposed legislation could have a material impact, particularly on older lithography tools that account for roughly 10% to 15% of overall sales. Within that segment, China represents a significant share, suggesting a potential near-term revenue impact, although the effect may ease over time.
The proposals must still move through the U.S. legislative process before becoming policy. Analysts noted that the outcome and final scope of restrictions remain uncertain.
China’s semiconductor sector has adjusted to earlier export controls by investing in domestic capabilities and seeking alternatives. However, major chipmakers, including Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor, continue to rely on ASML’s DUV lithography systems for producing less advanced chips.
Industry analysts said there are limited global alternatives to ASML’s lithography technology, particularly for EUV systems, while options for replacing DUV equipment remain constrained. If additional restrictions are implemented, analysts indicated the measures could affect semiconductor manufacturing capacity and supply chain dynamics tied to lithography equipment.
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