Dutch company ascribes the decision to a licence modification, whereas an initial report linked it to U.S. pressure ASML Halts.

A company from the Netherlands supposedly stopped sending advanced microchip equipment to China due to pressure from the US government, according to reports.

Chinese authorities were due to get three high-tech equipment from ASML, a significant participant in the production of computer chips. In spite of this, the Dutch government revoked the necessary export permissions just before the shipment was to take place.

The production of extreme ultraviolet lithography systems (EUVs) that use lasers for the purpose of fabricating chip circuits is the company’s area of expertise. A number of the world’s most prominent semiconductor manufacturers, including Samsung and Intel, are among the users of these systems. They are used in a wide variety of products, ranging from mobile phones to high-end military equipment.

According to Bloomberg, ASML decided to postpone the supply of its most cutting-edge machinery owing to a request from the Biden administration. ASML subsequently explained that the Dutch government had “partially revoked” the licencing for two kinds of lithography equipment, affecting only a “small number of customers” in China.

ASML said in their statement that interactions with the US government helped them get a better understanding of the scope and ramifications of US export control legislation. The US is putting pressure on China to slow its progress in semiconductor expertise and manufacturing. As a result of this campaign, the US has encouraged its allies to prevent the export of semiconductor manufacturing knowledge.

Last October, the Biden administration imposed new restrictions to prohibit non-US corporations from exporting semiconductor chips and lithography tools created in the United States.

To maintain US technical superiority while navigating complicated global trade dynamics, a deliberate plan is being implemented. The ramifications are far-reaching, highlighting the complex interaction of technology, international politics, and strategic control over important sectors.

In July, the Dutch government acquiesced to restrictions on the sale of ASML’s second most advanced deep ultraviolet (DUV) lithography devices, in response to pressure from the United States. On Monday, these restrictions were officially enforced.

In response to the recent blocking of ASML orders, Wang Wenbin, a spokesperson for China’s foreign ministry, urged the Netherlands to maintain fairness, respect market norms and laws, and take concrete steps to protect the mutual interests of both nations and their businesses while maintaining global supply chain stability.

He chastised the United States for its role, calling it “hegemonic and bullying behaviour.”

ASML said that it does not expect the licence revocation to have a substantial impact on its financial forecast for 2023.

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