ASM, ASML and Nexperia not impacted by new US semicon export crackdown (for now)

The US has launched a third wave of semiconductor export restrictions to China, expanding the ‘black list’ of Chinese companies and imposing new curbs on chips and chipmaking equipment. Nexperia’s parent company Wingtech is affected, while ASM International and ASML see no immediate impact, although this could change if the Dutch government adopts the same rules. It’s done so in the past.

The addition of Wingtech to the so-called entity list will have limited consequences for Nexperia, a spokesperson told Reuters. “The listing subjects Wingtech’s access to US technology to licensing requirements. These do not apply to Nexperia or its subsidiaries. Nexperia will comply with the US restrictions as these apply to its interactions with Wingtech.”

For equipment makers, the US introduced new curbs on 24 additional chipmaking tools and three software tools. This also affects gear made in countries such as Singapore and Malaysia through the expansion of the so-called Foreign Direct Product Rule (FDPR), with which the US subjects tech companies operating outside the US to US regulations. This rule change also hit US equipment makers, which have been evading sanctions by moving production abroad, according to a recent analysis by the Center for Strategic and International Studies.

Some allied countries, including the Netherlands, have been exempted from the latest FDPR update, but only because the US expects these countries to follow suit with their own regulations – hence the provision made by ASML. “We need our allies on board with our controls so that they’re as comprehensive and effective as possible,” US Secretary of Commerce Gina Raimondo said in a press briefing. According to the Financial Times, the Netherlands and other countries like Japan have already done or agreed to do so, which is why the FDPR exemption was issued in the first place.

In a preliminary assessment, ASM says the new curbs are “largely in line with our previous assumptions.” As a result, the Almere-based firm reiterated the guidance issued at the end of October. ASML did the same, while also pointing out that the world’s semiconductor demand isn’t tied to a specific region, rendering long-term damage to business negligible.

Aside from semiconductor manufacturing equipment, the latest round also introduces restrictions on AI chips, specifically the high-bandwidth memory (HBM) chips used in massive quantities in AI accelerator chips. These sanctions hit South Korea’s SK Hynix and Samsung as well as US firm Micron.

This article was edited on 4 December 10:00 to add ASM’s assessment.