ASML Holding NV (NASDAQ:ASML) faces renewed global scrutiny as reports highlight its customer exposure in China, while strong demand for its critical chipmaking tools continues to underpin its long-term growth outlook.
The company’s customers reportedly include companies with ties to China’s military, Reuters cited Nieuwsuur reports.
The Dutch chip equipment maker told Reuters that it fully complies with export laws and only sells regulatory-compliant equipment.
Also Read: Key AI Chip Supplier ASML Deepens Ties With Samsung and SK hynix in South Korea
Allegations Involving Chinese Military-Linked Entities
The report said ASML sold parts to a subsidiary of state-owned China Electronics Technology Group, a major supplier to the Chinese military, based in part on Chinese trade data.
Washington issued semiconductor technology sanctions on China, restricting its access to artificial intelligence technology from U.S. companies like Nvidia Corp. (NASDAQ:NVDA), Micron Technology Inc. (NASDAQ:MU), and ASML, citing national security threats.
It also said ASML supplied equipment to Shenzhen International Quantum Academy and Chinese chipmakers SiEn (Qingdao) and SMBC, a subsidiary of SMIC.
China remained ASML’s largest market in 2024, accounting for 36% of sales, or roughly 10 billion euros ($11.6 billion).
The $437 billion ASML stock gained 62% year-to-date, topping the PHLX Semiconductor Index’s over 48% returns, backed by the AI frenzy due to its near-monopoly on critical chipmaking technology.
Analyst Outlook
Goldman Sachs analysts said ASML could significantly exceed its 2030 revenue targets as surging demand for Extreme Ultraviolet (EUV) chipmaking tools, driven by AI infrastructure buildouts, accelerates its long-term growth.
They said ASML stands as the only company that can produce EUV equipment at scale, making it essential for manufacturing advanced AI chips across logic, memory, and analog.
The analysts project a bullish scenario in which ASML’s revenue rises 59% versus the midpoint of its 2030 guidance, requiring the deployment of roughly 104 EUV systems.
They added that ASML is strengthening partnerships across Asia, including with South Korean chipmakers, while maintaining its China business under strict export compliance.
ASML Price Action: ASML Holding shares were up 0.03% at $1120.00 during premarket trading on Tuesday. The stock is trading near its 52-week high of $1141.71, according to Benzinga Pro data.
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