This article first appeared on GuruFocus.
ASML Holding NV (NASDAQ:ASML) struck a confident tone this week after Beijing unveiled new export restrictions on rare earth materialscritical inputs for chip manufacturing that have sent tremors through the global semiconductor supply chain. Chief Financial Officer Roger Dassen said the company is well prepared, noting that ASML’s long production lead times and forward material planning help cushion short-term risks. Bloomberg recently reported that the Dutch chip-equipment giant could face shipment delays due to the new Chinese curbs, which now require foreign firms to seek government approval before exporting products containing trace amounts of China-sourced rare earths.
Beijing’s latest move marks a sharp escalation in its strategic control over materials essential to advanced chipmaking, and comes amid rising US-China technology tensions. In response, President Donald Trump threatened to impose an additional 100% tariff on Chinese imports and expand export controls on critical software. For ASML, whose lithography systems underpin the world’s most advanced semiconductor production, the geopolitical crossfire adds yet another layer of uncertainty to an already complex operating landscape.
The company’s access to China has already been heavily constrained by US-led restrictions. ASML has long been barred from selling its cutting-edge extreme ultraviolet (EUV) machines to Chinese customers, and last year, the Dutch governmentunder US pressurealso blocked exports of its immersion deep ultraviolet (DUV) systems. Dassen’s remarks suggest the company remains operationally resilient for now, but the broader industry could be entering a more volatile phase, where rare earths, lithography tools, and geopolitical leverage are increasingly intertwined in the race for semiconductor supremacy.
