Chipmaking Giant ASML at the Heart of U.S.-China Tech Battle: Export Bans and Global Implications
Portfolio Pulse from Anusuya Lahiri
ASML Holding N.V. (ASML) has halted shipments of high-end lithography machines to China, following U.S. directives. China's Commerce Minister expressed grave concerns over U.S. pressure on ASML and potential tariffs on Chinese chips. The U.S. is assessing reliance on Chinese chips and considering tariffs to protect against military use. Huawei's launch of a handset with an advanced chip despite sanctions raised U.S. security concerns. Microsoft Corp (MSFT) linked a cyberattack on U.S. Commerce Secretary Raimondo's email to China. Nvidia Corp (NVDA) faces challenges in China due to U.S. export controls, with Chinese companies potentially reducing orders for high-end AI chips from Nvidia by 50%-60% in five years. ASML's stock saw a slight decrease.
January 11, 2024 | 8:25 pm
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ASML has stopped exporting high-end lithography machines to China, in line with U.S. directives, affecting its business with Chinese customers.
ASML's compliance with U.S. export bans directly impacts its ability to sell high-end products to China, likely leading to a negative short-term impact on its stock price due to concerns over lost revenue and market share.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Nvidia faces potential order reductions in China due to U.S. export controls, with Chinese companies expected to cut high-end AI chip orders by 50%-60% in five years.
The expected reduction in orders for Nvidia's high-end AI chips in China due to U.S. export controls suggests a negative short-term impact on Nvidia's stock price, as the Chinese market represents a significant portion of its business.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Microsoft Corp attributed a cyberattack on U.S. Commerce Secretary Raimondo's email to China, potentially escalating U.S.-China tech tensions.
While the cyberattack attribution to China by Microsoft may increase tensions, it does not directly affect Microsoft's operations or financial performance in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50