TMTPost -- Amsterdam-listed Shares of ASML Holding NV soared as much as 11% before settling around 5.6% higher on Wednesday. U.S.-traded shares of the world’s leading lithography machine manufacturer closed 8.9% higher that day. The shares of Netherland-based ASML rallied on reported  exemption from the new U.S. export curbs on semiconductor gear to China.  

Credit：ASML

The U.S. government plans to roll out a new rule next month to expand exports of equipment from some foreign countries to Chinese chipmakers, Reuters reported Wednesday, citing sources familiar with the rule. It was reported that about half of a dozen Chinese semiconductor fabrication factories, which are at the center of China’s most sophisticated chipmaing efforts, will be prohibited from receiving exports from many countries.

The new rule will impact exports to China from countries and regions including Taiwan, Israel, Singapore and Malaysia, but shipments from allies that export key chipmaking equipments, including Japan, the Netherlands and South Korea, will be excluded, according to the sources.

A spokesperson at the U.S. Department of Commerce later that said in a statement that the department is continually assessing the evolving threat environment and updating its export controls, as necessary, to protect U.S. national security and safeguard its technological ecosystem. The person added the U.S. remains committed to working closely with its allies.

Founded in 1984, Netherlands-based ASML provides comprehensive lithography solutions encompassing hardware, software, and services, assisting chip manufacturers in large-scale image etching on silicon wafers. Meanwhile, ASML is currently the only manufacturer of EUV lithography systems in the world. As a key for the future lithography technology and advanced process, EUV lithography is the most expensive step in making the advanced microchips that power data centers, cars and iPhones.

ASML has been restricted from selling its high-end machines in China since 2019 due to U.S.-led export controls. The company confirmed at the beginning of this year that a license for the shipment of NXT:2050i and NXT: 2100i has been revoked by the Dutch government, but added the revocation just affected a small number of customers in China. “We do not expect the current revocation of our export license or the latest U.S. export control restrictions to have a material impact on our financial outlook for 2023,” ASML said in the statement in January.

Later in Janaury, ASML CFO Dassen disclosed new U.S. and Dutch export curbs are expected to reduce sales of its mid-range "DUV" product lines to China by about 10% to 15% this year, after they hit record levels last year. Dassen said the company will not get export licenses for shipment into China for advanced immersion tools like NXT:2000i and up this year, but he still expected demand from China for older tools to stay very solid.

Earlier July, a Bloomberg report said the Biden administration has told allies that it’s considering using the most severe trade restrictions available if companies such as Japanese firm Tokyo Electron Ltd. and ASML continue giving the country access to advanced semiconductor technology. The U.S. was reported to consider whether to impose the foreign direct product rule, or FDPR, which allows the country to impose controls on foreign-made products that use even the tiniest amount of American technology. Seeking leverage with allies, the U.S. government is presenting the idea to officials in Tokyo and the Hague as an increasingly likely outcome if the countries don’t tighten their own China measures, according to the report.