US Lawmakers Question ASML Holding N.V. (ASML)’s Deals with Chinese Firms, Citing National Security Concerns Over Advanced Chip Tech

We recently compiled a list of the 14 AI News You Should Pay Attention To. In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against the other AI stocks you should pay attention to.

A lot has been made of the recent efforts by the United States government to tighten chip exports to China. This coordinated effort, just before Donald Trump takes office, includes stricter license restrictions on US chip firms doing business with China, added scrutiny on those that assemble their hardware in China, and an appeal to allies in Europe and Asia to follow suit. These efforts have only served to further bolster the semiconductor index in China, which leaped to a record high on November 11 amid reports that a recent US order to halt TSM chip supplies to China would accelerate efforts in Beijing to set up advanced chip manufacturing companies in the Asian country.

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Chinese brokerage Cinda Securities, in a note published on the China chip situation on November 10, has said that in the medium and long term it will force the reorganization of the supply chain, increase the demand for domestic advanced process production capacity, and promote technological breakthroughs in upstream semiconductor equipment and materials. Many Chinese firms are reliant on TSM chips – 11% of TSM revenue is linked to China – and analysts expect these firms to undergo short-term pain from the US measures, but back them to emerge stronger in the long term due to improvement of domestic chip manufacturing.

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A technician in a clean room working on a semiconductor device, illuminated by the machines.

Market Capitalization: $268 Billion 

ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. The company was among a host of semi-stocks that recently received letters from US lawmakers over their business deals with Chinese firms. In the letter, the chief of the House Select Committee on the Chinese Communist Party, John Moolenaar, and Ranking Member Raja Krishnamoorthi, voiced their concern that the semiconductor equipment firms could be used to give the People’s Liberation Army an advantage to build advanced processors and reinforce China’s domestic chip capacity.

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