Why Is ASML Stock Trading Lower Tuesday?

ASML Holding N.V.  ASML shares are trading lower on Tuesday following the Netherlands' decision to block the export of some lithography systems to China. 

The Dutch government's partial revocation affects the NXT:2050i and NXT:2100i systems, which are crucial for manufacturing advanced microprocessors. 

This action aligns with U.S. export restrictions and follows a September rule requiring Dutch semiconductor companies to obtain government permission to export specific chip-making equipment, the Wall Street Journal reports.

Also Read: Lam Research, ASML Lead Surge In Revenue From China Despite US Trade Curbs

The agreement to restrict exports, reached by national security officials from the Netherlands, Japan, and the U.S., aims to limit China's access to sophisticated semiconductor technologies. 

Despite earlier reports suggesting ASML could continue shipping restricted equipment to China until the end of 2023, the Dutch government's latest decision has altered this prospect.

ASML, known for its expertise in photolithography, a critical process in chip production, stated that the license revocation and U.S. export controls would not materially impact its financial outlook for 2023.

In response, China's Ministry of Foreign Affairs called on the Dutch government to maintain an objective and fair stance, urging actions to protect mutual interests between China and the Netherlands. 

Ministry spokesperson Wang Wenbin, at a press briefing, criticized the U.S.'s coercion of other countries into imposing a technological blockade against China. 

He condemned the U.S.'s actions as a severe violation of international trade rules and a significant detriment to the global semiconductor industry.

Price Action: ASML shares traded lower by 3.75% at $728.56 premarket on the last check Tuesday.

Also Read: ASML Stock Drops As Key Supplier TSMC Reportedly Postpone Deliveries Amidst Industry Demand Concerns

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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