ASML’s China Chip Business Faces New Curbs From Netherlands

  • Huawei, SMIC rely on ASML machines for advanced chipmaking
  • China cannot replicate ASML’s advanced lithography systems yet

The ASML Holding NV headquarters and factory in Veldhoven, Netherlands.

Photographer: Peter Boer/Bloomberg
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The Netherlands plans to limit ASML Holding NV’s ability to repair and maintain its semiconductor equipment in China, a potentially painful blow to Beijing’s efforts to develop a world-class chip industry.

The government of Prime Minister Dick Schoof will likely not renew certain ASML licenses to service and provide spare parts in China when they expire at the end of this year, according to people familiar with the matter. The decision is expected to cover the company’s top-of-the-line deep ultraviolet lithography, or DUV, machines, said the people, asking not to be named discussing sensitive government decisions.