Tech war: ASML’s China shipments rebound in second quarter but further restrictions loom
- ASML has come under increasing scrutiny from Washington to shun China-based customers
Dutch lithography system supplier ASML Holding said its second quarter shipments to mainland Chinese customers accounted for nearly half of its worldwide total, despite US restrictions on exporting its most advanced machines to China.
At the same time, reports that Washington is considering even tighter restrictions on tech exports to China have cast a shadow over the company’s business prospects.
According to Bloomberg News, the Biden administration has told the Netherlands and Japan that it would resort to the harshest available trade restrictions if companies such as ASML continue providing advanced chip technology to China.
ASML, which has come under increasing American scrutiny to shun China-based customers, reported that the value of mainland-China bound shipments was 2.35 billion euros (US$2.5 billion) in the June quarter, representing 49 per cent of its total sales.
China is well ahead of South Korea and Taiwan in terms of ASML’s geographic sales, with the latest numbers close to the peak of 2.4 billion euros for its China shipments in the third quarter of 2023.
The Netherlands-based company reported 6.2 billion euros in second-quarter revenue, of which 4.8 billion was derived from sales of its equipment, according to ASML data published on Wednesday. The amounts were down 10 per cent and 14 per cent year on year, respectively.
