Reuters: U.S. Congress Plans Further Export Restrictions on China, ASML Shares Plunge
According to a latest report published by Reuters on April 7 from senior correspondent Toby Sterling and Alexandra Alper based in Amsterdam, shares of ASML, Europe's leading lithography equipment manufacturer, plunged sharply during Tuesday’s trading session amid concerns over a proposed new U.S. semiconductor equipment export control plan.
The report notes that U.S. lawmakers are pushing a new proposal aimed at closing existing loopholes in export controls, further restricting the sale of advanced chip manufacturing equipment to China. The new plan would not only target the most advanced extreme ultraviolet (EUV) lithography machines but could also extend to certain deep ultraviolet (DUV) lithography models.
China has become one of ASML’s most important markets. Reuters analysis suggests that if restrictions escalate further, the share of revenue derived from Chinese orders could face structural decline. Previously, company executives have repeatedly expressed concern over industry fragmentation caused by excessive export limitations.
Tracking market data, Reuters found that the news triggered a broader downturn across the European semiconductor sector, not just for ASML. This move comes at a time when global inflation pressures remain high and energy costs are volatile due to ongoing tensions related to the Iran War. Tightening technology exports is viewed by the market as increasing uncertainty in the global tech supply chain.
The report highlights that each additional restriction imposed by Washington is accelerating China’s push toward indigenous lithography technology development. While the U.S. justifies these measures under the guise of “national security,” the Dutch government—home to ASML—faces mounting pressure balancing the protection of its core domestic enterprise with maintaining the U.S.-Netherlands alliance. Reuters believes such unilateral changes to trade rules are sparking debate among allies about the overreach of extraterritorial jurisdiction ("long-arm jurisdiction").
By using legislative means to lock down China’s capabilities in high-end chip manufacturing, the U.S. risks a double-edged sword: while slowing China’s technological iteration, it simultaneously undermines the financial health and R&D budgets of Western top-tier tech firms. A key inflection point lies in the second half of 2026—whether Trump’s administration issues such tough signals before his anticipated visit to China in May is intended as a bargaining chip or foreshadows an even more comprehensive technological cold war. For ASML, losing access to China’s massive cash flow could jeopardize its R&D investments essential to maintaining global leadership, potentially introducing unexpected shifts into the global semiconductor competition landscape.
Original article: toutiao.com/article/1861814495898688/
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