ASML shares fell after U.S. lawmakers proposed new restrictions that could further limit the company’s ability to sell chipmaking tools to China.
The proposed legislation could expand existing export controls to include ASML’s DUV immersion lithography systems, which are critical for producing semiconductor circuitry. If implemented and enforced by the Netherlands, it would mark the first major tightening of restrictions since 2024.
ASML, the global leader in lithography equipment, faces limited competition from firms such as Nikon and China’s SMEE. Its tools are essential for chip manufacturers worldwide, making any restriction significant for the broader semiconductor supply chain.
Analysts expressed concern about the potential impact. Some estimates suggest the measures could reduce ASML’s earnings per share by up to 10%, while others expect a smaller, single-digit hit to revenue. China currently accounts for a substantial portion of ASML’s business, with the company projecting around 20% of its sales to come from the market in 2026.
While demand from other regions may increase as non-Chinese chipmakers expand production, analysts note this is unlikely to fully offset lost revenue from China.
Beyond company-specific effects, tighter export controls could exacerbate existing global chip shortages, particularly as demand continues to rise due to artificial intelligence and advanced computing needs.
