China’s Growing Importance in ASML’s Semiconductor Business

ASML’s second-quarter revenue revealed that China accounted for approximately 20% of the company’s total net sales, highlighting the nation’s continued significance in the semiconductor supply chain. While export controls have restricted China from acquiring ASML’s most advanced lithography systems, the country has turned its focus to purchasing deep ultraviolet (DUV) systems for manufacturing mature-node semiconductors used in various industries. This shift in buying patterns underscores China’s determination to bolster domestic chip production amidst tightening restrictions. Looking ahead, ASML anticipates China’s contribution to its revenue stream may normalize over time as export regulations evolve and customers adjust their previous purchases. Despite…