Sources: ASML restrictions on exports to China are still strict

Dutch chip maker ASML’s exports to China could be further tightened. Sources tell Bloomberg News. It is already known that from September ASML will be able to supply only certain machines to China. But supplies to some Chinese factories may now be halted by the US, the sources said.

For example, this could include doing business with a factory owned by Semiconductor Manufacturing International, China’s leading chip company. In those cases, the export must be approved by both the Netherlands and the United States. In addition to the permit obligation for the export of some ASML machines, there will also be a permit obligation for the maintenance of the machines, hundreds of which are still in China. According to reports, the export of spare parts will also be checked.

The US can also put its stamp on those restrictions. For example, sources expect the US government to implement the Foreign Direct Production Rule (FDPR measure). It allows the U.S. to block exports from foreign suppliers if they contain a few U.S.-made parts. The U.S. government previously adopted the FPDR measure to prevent chip companies from sharing U.S. technologies with Chinese telecom giant Huawei.

Export control for ASML came under pressure from the US government. It announced last October that it would limit exports of Chinese-owned chip technology over fears that the chips could be used for military purposes. ASML’s exports have been limited for some time. Most modern EUV machines have not been allowed to be exported to China for some years.