ASML, Applied Materials Fall After US Panel Slams China Sales

Core Viewpoint - The US House committee has raised concerns that semiconductor companies are inadvertently supporting China's semiconductor industry and military, leading to fears of increased export controls [1][4][5]. Group 1: Company Reactions - Semiconductor companies such as ASML, Applied Materials, Tokyo Electron, KLA, and Lam Research experienced significant stock declines following the committee's statements, with ASML dropping as much as 7.1% in Amsterdam [3][4]. - The committee's report indicated that these companies have made substantial profits from selling equipment to Chinese state-owned and military-linked firms, although no legal violations were claimed [2][6]. Group 2: Government Actions and Industry Impact - The committee has urged the US government to expand export bans and licensing requirements for tool exports to China, although it lacks the authority to enforce these measures [4]. - The semiconductor industry has been increasingly targeted amid rising US-China tensions, with recent actions including the revocation of authorizations that previously allowed certain companies to supply Chinese factories without prior approval [5][6]. Group 3: National Security Concerns - The committee expressed that China's advancements in chip manufacturing pose threats to US national security, accusing toolmakers of facilitating the production of chips for the Chinese military [6]. - ASML, as the sole producer of advanced lithography machines essential for high-end chip production, has faced restrictions preventing it from selling its most advanced machines to China due to US-led export controls [7].