ASML Stock Slips as Shock Report Flags Customer Ties to Chinese Military

ASML ASML shares dropped about 1% on Tuesday after Dutch television program Nieuwsuur reported that at least one customer may have ties to China's military.

Nieuwsuur cited Chinese import-export records suggesting ASML sold parts to a subsidiary of state-owned China Electronics Technology Group, which supplies equipment to the Chinese armed forces.

An ASML spokesperson told reporters the company exports only parts and machines that do not require a license, or for which a valid license has been granted. The spokesperson added that the Dutch government determines which exports need authorization and issues any required licenses.

The report comes amid heightened export controls. The Netherlands and Japan have aligned with U.S. curbs limiting certain semiconductor tools and components destined for China on national-security grounds.

ASML previously said in 2023 it met contractual obligations by shipping some equipment to China before new restrictions fully took effect, and regulators continue to review export compliance across the sector.