ASML, the largest supplier of equipment to computer chip makers, said on Wednesday that geopolitical tensions and a growing U.S.-led campaign to restrict exports to China remain business risks.
In its annual report released Wednesday, the Dutch company pointed to a growing list of restrictions imposed by the United States, most of which had the consent of the Dutch government.
“Starting in 2022, the list of Chinese companies affected by export control regulations is growing,” the company wrote.
“The list of restricted customers and scope of restrictions are subject to change.”
ASML has been restricted from selling its cutting-edge extreme ultraviolet (EUV) lithography tool line in China since 2019, following a U.S.-led campaign to slow China's technological and military progress. I have never sold tools.
The Chinese government is a huge importer of chips for its own market and manufacturing industry, so it subsidizes domestic chip manufacturing in an effort to become self-sufficient.
ASML dominates the market for lithography systems, machines used to create circuits in one of the key steps in the chip manufacturing process.
ASML noted that its list of competitors has grown beyond traditional rivalries such as Japan's Canon and Nikon in its old core business and non-lithography US companies Applied Materials and KLA.
“We also face competition from new competitors with significant financial resources, as well as competitors driven by ambitions of self-sufficiency in a geopolitical context.”
