ASML targeted in latest round of US tariffs

Recent developments in the semiconductor industry have put European and Japanese suppliers of semiconductor equipment in the crosshairs of potential US tariffs. The Bureau of Industry and Security at the US Department of Commerce is seeking public input on a national security investigation into the import of semiconductors and semiconductor manufacturing equipment. This move is part of a broader strategy to bring cutting-edge lithography intellectual property to the US, as previously reported by eeNews Europe in October 2024.

The impending tariffs are expected to focus more on imports of fab equipment, with early estimates suggesting that major US semiconductor equipment manufacturers like Applied Materials, Lam Research, and KLA could face annual costs of up to $350 million each. The investigation is honing in on semiconductor equipment produced overseas that has limited competition from US-made alternatives, particularly deep UV (DUV) and extreme UV (EUV) lithography systems crucial for advanced processes below 10nm.

Eric Longnecker, Deputy Assistant Secretary for Technology Security, is leading the charge to assess the impact of existing trade policies on domestic semiconductor production and capacity. The investigation aims to determine whether additional measures, such as tariffs or quotas, are necessary to safeguard US national security interests. Stakeholders are being asked to provide insights on product types and node sizes that could exclusively rely on equipment from US suppliers, as well as identifying components that are solely available outside the US.

Furthermore, the investigation is soliciting feedback on the potential risks posed by export restrictions imposed by foreign nations, including the possibility of these nations weaponizing their control over semiconductor and SME supply chains. ASML, a Dutch supplier of lithography systems, declined to comment on the matter when approached by eeNews Europe.

Meanwhile, the US government recently allocated $1 billion for an EUV research center in Albany, New York, where ASML is a key partner. This investment underscores the importance of access to EUV lithography research and development in maintaining US technology leadership, streamlining prototyping processes, and nurturing a skilled semiconductor workforce. ASML reported robust financial performance in the first quarter of 2025, with total net sales reaching €7.7 billion and profits of €2.4 billion. The company anticipates total net sales for the year to range between €30 billion and €35 billion.