- Shares of ASML (ASML) and BESI plunged after resuming trading, falling 7.4% and 8% respectively.
- The selloff follows reports of potential new export restrictions targeting advanced semiconductor equipment to China.
- Both companies face heightened regulatory risk, with ASML's lithography tools and BESI's packaging gear in focus.
Sharp Decline Resumes
Trading in ASML Holding NV and BE Semiconductor Industries (BESI) resumed sharply lower on Thursday, with ASML falling 7.4% and BESI dropping 8%, according to people familiar with the matter. The declines extend a volatile session triggered by reports that the Dutch government may impose additional export controls on advanced chipmaking equipment.
The moves underscore the sector's sensitivity to geopolitical tensions, as investors weigh the impact of potential restrictions on sales to China, a key market for both firms.
Regulatory Overhang
ASML, the world's leading supplier of photolithography equipment, has long been a target of US-led efforts to curb China's semiconductor ambitions. New restrictions could expand curbs beyond its extreme ultraviolet (EUV) tools to include deep ultraviolet (DUV) systems, analysts said. BESI, which makes bonding and packaging equipment, faces similar risks if its technology is deemed critical for advanced chip production.
“Without a deal, the companies would be forced to forfeit significant revenue,” said an analyst who declined to be named, citing firm policy. Spokespeople for ASML and BESI declined to comment when reached.
Market Reaction
The selloff hit the broader semiconductor sector, with Dutch peers also under pressure. ASML's stock had been halted earlier in the day as volatility spiked. The losses come ahead of key dealines, including the Dutch government's expected quarterly update on export licenses.
Correction: An earlier version of this article incorrectly stated that trading was halted on Wednesday. It was halted earlier Thursday.