ASML Shares Fall as U.S. Lawmakers Propose New Export Curbs on China

ASML shares experienced a decline following a proposal by U.S. lawmakers to implement stricter export controls on semiconductor manufacturing equipment to China. The proposed legislation specifically targets deep ultraviolet (DUV) lithography machines, which were previously accessible to Chinese manufacturers. This move aims to further restrict China's capabilities in producing advanced semiconductors by limiting access to essential Dutch-made technology. Analysts suggest that losing further ground in the Chinese market poses a significant threat to ASML's revenue projections and long-term growth. The news also weighed on broader semiconductor ETFs, including SOXX and SMH, reflecting sector-wide concerns over geopolitical risks. These developments underscore the escalating trade and technological tensions between the U.S. and China, impacting the global chip supply chain and investor sentiment.