ASML is already not allowed to sell its latest chip machines in China, while that is the largest market for the Veldhoven company. Stricter export rules now also apply to older machines. In doing so, the government wants to prevent China from using advanced chips for military purposes.

“When you look at the geopolitical landscape, I think it’s clear that the United States will continue to put pressure on its allies for more restrictions,” Fouquet told Bloomberg.

According to Fouquet, we have to ask ourselves “what is good for the Netherlands and for Europe”. The CEO states that much of the business ASML does with China is focused on technologies that pose little danger to national security.

China has been the largest market for ASML in the past five quarters. In the third quarter, the country accounted for nearly 2.8 billion euros in sales, almost half of ASML’s total turnover. According to Fouquet, this was mainly due to the backlog of orders placed during the corona pandemic. ASML expects Chinese sales to shrink to about 20 percent of total sales next year.