Shipments of chipmaking machinery produced by ASML Holding NV destined for China were canceled at the request of President Joe Biden, despite the planned delivery predating the new export ban.
At the time of Biden’s request, ASML, a Dutch manufacturer and reportedly Europe’s largest technology company, possessed the licenses required to ship three deep ultraviolet lithography machines to Chinese firms until January, when the ban on high-end chipmaking equipment became effective.
However, U.S. officials asked ASML to halt the pre-scheduled shipment of some machines to China immediately, per Bloomberg.
The move comes amid Biden’s attempt to slow Beijing’s ambitions of building an advanced domestic semiconductor industry in China. As a result, the U.S. and its allies have begun to block access to certain technologies needed in the supply chain.
A spokesman for the Chinese Foreign Ministry said the latest move is an act of “hegemony” by the U.S. and called on the Dutch government to “respect the spirit of the contract and world order, to safeguard the mutual benefits of the two countries,” as reported by Bloomberg.
According to Gianmarco Bonacina, an analyst with Equita SIM, the recent crackdown will only motivate Beijing to accelerate building its domestic industry.
Nearly half of ASML’s sales in the third quarter of 2023 came from China. In comparison, China represented less than a quarter of sales in Q2 and only 8% during the first quarter.
“The more you put them under pressure, the more likely it is that they will double up their efforts,” said Peter Wennink, the outgoing CEO of ASML, per Bloomberg.