Shares of ASML fell on Tuesday after U.S. lawmakers proposed new restrictions that could limit the company\u2019s ability to sell chipmaking equipment to China. <\/p>\n
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The proposed legislation could block ASML from selling and servicing its DUV (deep ultraviolet) lithography machines in the Chinese market\u2014marking a potential escalation in ongoing efforts to restrict advanced semiconductor technology exports, News.Az<\/a> reports, citing Reuters<\/a>.<\/p>\n ASML is the world\u2019s leading manufacturer of lithography tools used to produce semiconductor chips, with limited competition from firms like Nikon and China\u2019s SMEE.<\/p>\n The company plays a critical role in the global chip supply chain, making any restrictions on its exports highly significant for the broader technology sector.<\/p>\n ASML shares dropped as much as 4.7% in early trading before trimming losses, reflecting investor concerns over the potential impact of tighter export controls.<\/p>\n Analysts warn that the proposed rules, if implemented and enforced by the Dutch government, could reduce the company\u2019s revenue and earnings. Some estimates suggest a single-digit percentage decline in sales, while others indicate earnings per share could fall by up to 10%.<\/p>\n China accounts for around 20% of ASML\u2019s expected sales in 2026, although older-generation machines may remain unaffected by the new restrictions.<\/p>\n Experts say any decline in Chinese sales could be partially offset by increased demand from other regions, as chipmakers outside China<\/a> expand production capacity. However, this may not fully compensate for the lost revenue.<\/p>\n Analysts also warn that stricter export controls could have wider consequences for the global semiconductor market.<\/p>\n Reduced access to advanced chipmaking equipment in China may further tighten supply chains, potentially worsening existing chip shortages and increasing pressure on industries reliant on semiconductors.<\/p>\n The situation highlights the growing intersection of geopolitics and technology, as governments seek to control access to critical infrastructure in the global AI and semiconductor race.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n
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