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The chief executive of Dutch semiconductor equipment maker ASML Holding said that another of its products is now subject to new export restrictions announced by the United States this week. In a press conference following the company's third-quarter earnings announcement, CEO Peter Vennick said he expects demand from Chinese chipmakers to remain strong despite a growing list of export restrictions imposed by the U.S. and Dutch governments.
Vennik clarified that another ASML product that was previously exempt from the Dutch export licensing rules introduced this year may now be restricted under the new US export rules announced on Tuesday. The ASML 1980Di tool can be used to produce both relatively advanced computer chips, as well as middle-and old-generation chips.
"Basically, 1980Di are subject to export restrictions, but only when they are used for advanced semiconductor manufacturing," Vennick said. He added that only a small number of Chinese factories can be considered "advanced".
ASML dominates the market for lithography equipment, which is used by chip manufacturers such as Taiwan Semiconductor Manufacturing Co, Samsung Electronics, and Intel Corp. to create chip circuits. The Chinese mainland is the third largest ASML market after Taiwan and South Korea.
However, sales in China accounted for 46% of total ASML sales in the third quarter, amid weak demand from other regions and the desire of Chinese customers to provide themselves with tools until the full implementation of the Dutch restrictions. "I don't think we'll see a peak this year, I think there will be significant demand for mature technology coming out of China," Wennick said. He added that export restrictions affect about 15% of ASML sales in China.
Earlier on Wednesday, ASML warned that sales in 2024 may remain flat as chipmakers delay capital spending amid an uncertain economic environment.
Vennik clarified that another ASML product that was previously exempt from the Dutch export licensing rules introduced this year may now be restricted under the new US export rules announced on Tuesday. The ASML 1980Di tool can be used to produce both relatively advanced computer chips, as well as middle-and old-generation chips.
"Basically, 1980Di are subject to export restrictions, but only when they are used for advanced semiconductor manufacturing," Vennick said. He added that only a small number of Chinese factories can be considered "advanced".
ASML dominates the market for lithography equipment, which is used by chip manufacturers such as Taiwan Semiconductor Manufacturing Co, Samsung Electronics, and Intel Corp. to create chip circuits. The Chinese mainland is the third largest ASML market after Taiwan and South Korea.
However, sales in China accounted for 46% of total ASML sales in the third quarter, amid weak demand from other regions and the desire of Chinese customers to provide themselves with tools until the full implementation of the Dutch restrictions. "I don't think we'll see a peak this year, I think there will be significant demand for mature technology coming out of China," Wennick said. He added that export restrictions affect about 15% of ASML sales in China.
Earlier on Wednesday, ASML warned that sales in 2024 may remain flat as chipmakers delay capital spending amid an uncertain economic environment.
