After the spectacular rally of recent months, chip stocks showed mixed performance at the end of the week despite headwinds.
The Trump administration reportedly expressed concerns that one of the Dutch company ASML's high-tech EUV lithography machines could be deployed in China despite all export restrictions. The stock of Europe's most valuable company fell up to 2.6 percent in early trading before narrowing the loss to 1.09 percent at 1,657.80 euros. The stock, which accounts for almost 8 percent of the pan-European Stoxx 600 index, has risen about 80 percent since the start of the year.
According to a Bloomberg report, US Commerce Secretary Howard Lutnick told executives of the Amsterdam-listed company that he feared one of the powerful extreme ultraviolet lithography machines had reached China. This would have violated export restrictions imposed by the US, the news agency wrote, citing unnamed sources.
"ASML has never delivered an EUV machine to China, nor have we exported components, modules, or equipment to China specifically designed for use in an EUV machine," the company said in a statement. ASML had previously rejected claims that it had failed to comply with export controls.
ASML is the world's only supplier of these machines, which are essential for mass production of the most advanced chips. The high-tech manufacturer thus stands at the forefront of the global arms race in artificial intelligence.
The lithography machines, which are strictly controlled and require close monitoring by ASML employees, use high-power lasers to print microscopic patterns on silicon wafers. The company's main customers include contract manufacturer Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics.
"These are very difficult things to smuggle," said Ben Barringer, head of technology analysis at asset manager Quilter Cheviot, referring to the machines.
ASML said it regularly engages with government officials worldwide. "We recognize the national security considerations behind export control regulations in the US and the Netherlands," the company's statement said.
ASML is used to diplomatic entanglements due to the importance of its equipment for high-tech chips, the analyst noted. It is simply not possible for the company to favor one country over another. "ASML must maintain relations with the Chinese. It's not just about siding with the US," Barringer said.
The Bloomberg report is likely to put pressure on ASML, said Tickmill market strategist Patrick Munnelly. The AI arms race between the US and China is a highly sensitive topic.
"This is significant not only for ASML itself," Munnelly wrote in a note to clients. "The global stock rally is heavily dependent on the chip sector. Any renewed risk of US-China technology restrictions would directly counteract the AI-driven optimism that supports the markets."
How chip stocks are reacting
After their tremendous run, chip stocks saw only partial profit-taking on Friday. The US sector index SOX has risen 12 percent so far in June. It has more than doubled over the course of the year. Some individual stocks are naturally performing even better.
STMicroelectronics traded slightly higher in Paris, closing up 0.04 percent at 67.92 euros. Infineon on XETRA ended down 0.05 percent at 81.97 euros.
SUSS MicroTec held up significantly better, ultimately gaining 8.76 percent to 111.70 euros. They were helped by a price target increase from Berenberg. Despite the rally, the market has not yet fully priced in the accelerating momentum in the end markets of the chip industry equipment manufacturer, wrote Amelie Dueckelmann-Dublany. SUSS MicroTec has gained 166 percent at its peak in 2026 and hit another record just the day before.
FRANKFURT/PARIS/NEW YORK (dpa-AFX) / DOW JONES
