ASML Shares Plunge 5.38% Amid New Dutch Export Controls on Semiconductor Equipment

ASML, a key player in the global semiconductor industry, has experienced a notable drop in stock prices, falling 5.38% and accumulating a 16.71% decline over the past four days. This marks its lowest level since January 2024.
Recently, the Dutch government announced an expansion of export control measures on advanced semiconductor manufacturing equipment. Come September 2024, more types of these machines will require government authorization before being exported. The government has clarified that this is not an outright ban but a regulation ensuring that each export request is assessed individually.
Formerly, ASML sought export licenses from the U.S. for some of its machines, but the new regulation shifts the responsibility to the Dutch government. The specific machines affected by this new regulation are the TWINSCAN NXT:1970i and 1980i models. Despite these changes, ASML officials maintain that this adjustment will have no impact on the company’s 2024 financial outlook or its long-term goals established in November 2022.
Christophe Fouquet, CEO of ASML, has expressed opposition to the earlier U.S. restrictions, stating that they are economically motivated and detrimental to Western interests. Dutch Prime Minister Dick Schoof echoed this view, emphasizing the consideration of ASML's economic interests while balancing the associated risks. Furthermore, he reaffirmed the significant role of ASML in the innovative landscape of the Netherlands.
The Dutch government has yet to specify any particular countries targeted by these new regulations. However, it emphasized that the decision stems from security concerns linked to technological advancements.
ASML, headquartered in the Netherlands, is singular in its capacity to produce advanced lithography machines essential for high-tech chip production used across various industries, from electric vehicles to military equipment. The company aims to achieve a revenue of 40 billion euros by 2025 and 60 billion euros by 2030. The expanded export controls are seen as an extension of measures first implemented a year ago, further tightening the constraints.
Despite these regulatory changes, ASML remains confident in its financial projections for 2024 and beyond.