ASML has stopped shipping chip manufacturing equipment to China.

According to Neowin , sources indicate that the administration of US President Joe Biden has contacted ASML directly in recent months to request a halt to the shipment of certain deep ultraviolet (DUV) lithography systems to Chinese customers.

New restrictions are making it difficult for China to produce advanced chips.

The canceled shipments occurred before new Dutch export restrictions on such technology came into effect on January 1st of this year. According to ASML, their license to ship the system to China in 2023 was "partially revoked by authorities" recently.

Although it is believed to affect a small segment of customers, the company said it is discussing export control regulations with the U.S., although it did not provide details on the number of affected machines.

In recent discussions with the U.S. government , ASML has further clarified the scope and impact of export control regulations. The company is fully committed to complying with all applicable laws and regulations, including export control laws, in the countries where it operates.

This move is part of a U.S. effort to curb China's ambitions to develop an independent, advanced semiconductor industry. Following the new decision, the share prices of Chinese chip manufacturers, including SMIC and Hua Hong Semiconductor, saw a slight decline.

China is a crucial market for ASML, accounting for 46% of the company's revenue last quarter as customers rushed to import DUV lithography machines before new restrictions took effect. However, the US is pressuring allies like the Netherlands to refuse China access to critical chip manufacturing tools. ASML's outgoing CEO, Peter Wennink, said tighter restrictions could cut the company's sales to China by up to 15%.

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