Expectations that the Dutch government will further limit sales to China by chip equipment giant ASML Holding NV may overshadow what are expected to be strong fourth quarter results due next week.
The Hague is expected to impose at least some additional restrictions on ASML’s exports to China, a Dutch government source familiar with security discussions between the United States and Netherlands told Reuters, though they could not give a timeframe.
ASML, a key supplier to chipmakers, generates about 15% of its sales in China, an important growth market even after it was restricted from selling its most advanced machines there under U.S. pressure in 2019.
Tensions between Washington and Beijing over semiconductors have since steadily worsened.
Washington in October imposed export restrictions on its own chip equipment companies aimed at hobbling China’s ability to make chips and to blunt its military progress.