BEIJING, November 7 (TMTPost)— An executive of ASML Holding NV, the world’s leading lithography machine manufacturer, remained upbeat on business expansion in China despite new chip curbs imposed by the West.

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ASML’s business in China delivers a rapid growth this year and it is very optimistic about business there next year, Shen Bo, senior vice-president of ASML and president of ASML China, said in an interview with Chinese newspaper China Daily. "This year, the Chinese mainland is expected to account for about 20 percent of ASML's total sales," Shen told the newspaper as his company is participating in 2023 China International Import Expo.

ASML is hiring more than 200 people this year on mainland China this year, and the local employment plan is also likely to be big next year as the Dutch chipmaking giant anticipated business development will continue to bring substantial demand, Shen said.

In the past couple of years around 15 % of ASML's sales came from mainland China, ASML CEO Peter Wennink had said. Sales in China made up 46% of ASML’s total revenue in the third quarter of this year. Looking forward, Shen told China Daily that his company forecasted demand for chips using the whole established manufacturing process is still very strong, so “we are also very optimistic about our business in China next year.”

As a leading global innovator in the semiconductor industry since its founding in 1984, Netherlands-based ASML provides comprehensive lithography solutions encompassing hardware, software, and services, assisting chip manufacturers in large-scale image etching on silicon wafers. Meanwhile, ASML is currently the only manufacturer in the world using Extreme Ultraviolet (EUV) light for lithography machines.

ASML said two months ago that it has applied for an export license for TWINSCAN NXT: 2000i and subsequent immersion lithography systems, and the Dutch government has granted the license necessary for the company starting from September 1, to allow it to continue exports of these machines to China.

Under the new export control rules effective on September 1, ASML is still able to fulfill the contracts signed with customers and ship the abovementioned lithography by the end of 2023, the company said. It expected export controls would not have material impact on its financial outlook for the year 2023 or beyond.

In an in-depth talk with TMTPost App last week, Shen Bo said ASML will have installed nearly 1,400 lithography and metrology machines in China by the end of this year. He added that ASML has been delivering machines to China since the first delivery in 1988 and “our growth in China over these years has actually been very considerable.”

The U.S. Department of Commerce introduced on October 18 a rule entitles “Implementation of Additional Export Controls: Certain Advanced Computing Items; Supercomputer and Semiconductor End Use; Updates and Corrections”, which was going to come into effect following a 30-day public comment period. The new rule aims to limit China’s “access to advanced semiconductors that could fuel breakthroughs in artificial intelligence and sophisticated computers,” said the U.S. Commerce Secretary Raimondo.

Shen told TMTPost that ASML is still trying to understand new U.S. export control policy and around 10%-15% of its sales in China will be affected. However, he stressed the overall market trend is intact. “China's market demand will be still quite strong next year. In the short term, we think that there shouldn't be a significant impact on the overall business volume,” Shen said. “From the company's perspective, until 2030, the overall trend of the industry has been one of fluctuating growth, so there won't be a significant change in the company's sales trend.”