European tech giant ASML announced that it has secured licenses to supply China with lithography equipment to make chips until the end of the year. This was despite the new export restrictions that will come into effect from September.
However, ASML does not expect to receive export licenses to supply advanced deep ultraviolet (DUV) chip lithography scanners to China after January 2024, a company spokesman said on Thursday.
The Dutch company has run into trouble over US attempts to restrict exports of the latest technology to China, the third largest market for ASML. US President Joe Biden’s administration has insisted that shipments of certain deep ultraviolet (DUV) lithography scanners to China without a special license must be stopped.
These restrictions come into effect on September 1st. ASML is already banned from selling extreme ultraviolet (EUV) photolithography equipment, the most advanced system in its lineup, to China. The four-month period beginning in September is intended to allow ASML to meet its contractual obligations to Chinese customers.
ASML has previously expressed confidence that the lockdown will not have a material impact on its financial outlook for the current year or longer.
The imposition of export restrictions highlights growing tensions between the West and China over high-tech. Despite the current obstacles, ASML remains committed to meeting its contractual obligations to its Chinese partners and emphasizes the importance of this market to its business.