ASML and Applied Materials Stocks Dip Amid US Scrutiny Over China Chip Sales

Semiconductor equipment giants ASML and Applied Materials saw their shares decline following a U.S. House committee report implicating them in bolstering China's chip industry. The report suggests sales to Chinese state-owned and military-linked firms may prompt new export restrictions, though no laws were broken.

ASML, the sole producer of cutting-edge lithography machines, has already faced U.S.-led export curbs on advanced equipment sales to China. The Dutch government further restricted exports of its second-most advanced systems last year.

While shares initially dropped as much as 7.1% in Amsterdam—the steepest intraday fall since July—ASML has pared some losses and remains up 14% year-over-year. Other affected firms including Tokyo Electron, KLA Corp, and Lam Research also traded lower.