ASML shares fell Tuesday after U.S. lawmakers proposed tighter export restrictions, raising concerns over the chip equipment leader’s access to the critical Chinese market.
The stock dropped as much as 4.7% before trimming losses, reflecting investor unease over potential disruptions to high-value semiconductor sales.
The proposed measures could block shipments and servicing of ASML’s DUV immersion lithography systems, marking the first major restrictions since late 2024.
ASML dominates this niche technology, essential for chip production, though competition from Japan’s Nikon and China’s SMEE continues to evolve.
Analysts largely view the proposal negatively, warning it could tighten supply chains and increase pressure across already constrained global chip markets.
Financial impact estimates vary, with some projecting a modest revenue decline, while others warn earnings per share could drop by up to 10%.
ASML expects China to account for roughly 20% of its 2026 sales, though older-generation equipment may remain unaffected by new restrictions.
Despite potential losses, analysts anticipate increased demand in other regions, partially offsetting declines while reinforcing global semiconductor expansion trends.
