ASML Holding(US:ASML) Sou Hu Cai Jing·2025-10-14 13:52Core Viewpoint - The new Chinese rare earth regulations have created significant challenges for ASML, the leading lithography machine manufacturer, by tightening control over the supply chain and requiring approvals for any use of Chinese rare earth materials, even in minimal amounts [1][3][4] Group 1: Impact on ASML - ASML's EUV machines contain over 3,000 rare earth components, with 90% of the supply chain dependent on China, making it nearly impossible for ASML to bypass Chinese suppliers [3][4] - The new regulations require ASML to disclose the origin and processing of any rare earth components, even if they constitute only 0.1% of the total material [3][4] - ASML's clients, including major semiconductor manufacturers like TSMC and Intel, are now facing production delays and are demanding transparency regarding rare earth content in their equipment [4][6] Group 2: Broader Industry Implications - The new regulations have caused panic among European companies reliant on Chinese rare earths, such as Volkswagen and Siemens, which are critical for their electric motors and wind turbines [4][6] - The situation highlights the risks of over-reliance on a single supply chain, as companies may find themselves vulnerable to geopolitical tensions [6][7] - The ongoing conflict between technology and politics is reshaping the global supply chain, emphasizing the need for companies to adapt and seek diversified sources [6][7][8]