The Rise and Fall of ASML's China Sales

ASML's sales to China grew dramatically in the first three quarters of 2024 as customers scrambled to buy ASML's DUV machines in bulk ahead of U.S. and Dutch export restrictions. In the company's second-quarter 2024 earnings presentation, ASML said that it sourced as much as 49% of its sales from China. However, in September, the Netherlands expanded export restrictions on advanced chip manufacturing equipment by bringing licensing requirements of ASML's machines under its purview, taking over from the U.S. on controlling what machines ASML is able to export to other countries.