European think tank suggests punitive DUV machine export ban following China's latest round of rare earth export controls

A European think tank is proposing retaliatory trade measures against China in response to Beijing's threat to restrict rare earth material exports. The suggested counterstrike involves expanding controls on semiconductor tooling, particularly targeting ASML's DUV machines. ASML, a key supplier of EUV scanners and DUV machines, could face significant impact as a quarter of its revenue comes from China. If such a ban on DUV exports is implemented, it could deepen China's tech isolation but also accelerate the country's efforts to develop domestic alternatives. The move would have significant implications for both ASML and China's semiconductor industry.