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ASML Falls After U.S. Bill Targets China Chip Tool Sales

The proposal would bar ASML’s DUV lithography machines from China, heightening revenue and supply-chain risks.

Overview

  • ASML shares fell as much as 4.7% in Amsterdam trading Tuesday, following last week’s MATCH Act proposal to tighten chip tool export controls on China.
  • The bipartisan bill would block exports of ASML’s deep ultraviolet lithography tools to Chinese chipmakers and could also halt service support for installed systems.
  • ASML expects China to make up about 20% of its 2026 sales, and analysts now see impacts ranging from a single-digit revenue hit to as much as a 10% drop in earnings per share.
  • Any new limits would require U.S. allies to align and the Dutch government to enforce rules on ASML, leaving the legislative path and timing uncertain.
  • EUV machines have never been sold to China, yet major Chinese fabs still rely on ASML’s DUV tools, and JPMorgan warned broader curbs could further tighten global chip supply.