Recently, the Dutch government took an unexpected action by forcibly seizing control of ASML Holding, triggering a backlash in China with export controls. Reports indicate that ASML's wafer supply to its Chinese operations has likely been curtailed, leading to raw material shortages at the Dongguan factory, which has hampered normal production. Media visits to the Dongguan facility revealed that many clients had gathered to collect goods, only to be informed that there were none available. Although the Dongguan factory still holds a full order book, the lack of raw materials and workforce adjustments have necessitated the modification of work schedules to a "four days on, three days off" system, along with reduced overtime hours from around 70 to 80 hours per month to 40 to 50 hours.

On October 4, during the National Day holiday, the Ministry of Commerce of China issued an export control notice prohibiting ASML China and its subcontractors from exporting specific finished components and subassemblies made in China. Consequently, ASML will not be able to ship wafers to the Dongguan factory for packaging and testing and will instead redirect more wafers to testing facilities in Malaysia, the Philippines, and elsewhere to ensure supplies to overseas customers. However, since the Dongguan factory represents approximately 70% of ASML's global packaging capacity, this diversion will only have a minimal effect.

ASML's manufacturing centers are located in Germany and the UK, while its assembly and testing facilities are situated in China, Malaysia, and the Philippines, with the Dongguan facility being the largest, producing over 50 billion units annually and employing about 4,000 people. According to Wingtech, ASML's domestic capacity accounts for around 80%, and the Chinese market contributes more than 50% of its sales revenue. Insiders from ASML China noted that wafer supplies from the Dutch entity remain in place but did not disclose whether the scale of supply has changed, which generally implies an acknowledgment of the situation.

Timeline Recap: 2016: Beijing Jian Guang wins NXP’s RF power transistor business for $2.882 billion, forming Hong Kong Yucheng Holding with partners for $2.082 billion, and, with an $800 million loan from Deutsche Bank, completes the acquisition by February 2017. 2018: Huarong and Hefei plan to sell their stake in ASML; in April, Wingtech wins the bid with a 131.62% premium, acquiring 33.67% of ASML. 2019: Wingtech acquires additional shares for 19.925 billion Yuan, raising its ownership to 74.46% by June and eventually consolidates 100% ownership through Hong Kong Yucheng. By December, Wingtech completes the acquisition of 79.98% of ASML for 26.854 billion Yuan. 2020: March 25, ASML’s then-CEO, Frans Scheper, opts for early retirement, with Chairman Zhang Xuezheng stepping in. 2021: ASML’s former CFO retires; Stefan Tilger is promoted due to his professional abilities. 2023: In January, the US, Netherlands, and Japan agree on export controls for semiconductor equipment to China. Year-end discussions happen regarding corporate governance with the Dutch Ministry of Economic Affairs. 2024: The Dutch government revokes export permits for some DUV equipment. ASML notifies the Ministry requesting equal treatment on April 17. 2025: In June, US officials meet with Dutch counterparts, calling for a change in ASML’s Chinese CEO or risk being added to the entity list. A new rule expands restrictions to subsidiaries where sanctioned companies hold more than 50% stakes. On September 30, the Dutch Department of Economic Affairs issues a decree, freezing assets, IP, and business adjustments for 30 global entities of ASML for national security reasons. On October 1, ASML’s Legal Chief files an emergency request with the Dutch corporate court for an investigation, leading to the forced trusteeship of all Wingtech’s shares in ASML, except for one share. On October 4, a ban is placed on ASML China from exporting specific components. On October 7, the Dutch corporate court rules to suspend Zhang Xuezheng from all board positions in ASML and appoints a foreign independent director with decisive voting rights. On October 13, a spokesperson responds to inquiries about the situation during a regular press conference. On October 14, the China Semiconductor Industry Association voices support for Wingtech, and ASML's official website issues a related statement. By October 17, all ASML China employees receive a notice about the sudden halt of salary payments. On October 19, ASML China reassures all domestic entities that operations and employee compensation are normal, and production is ongoing smoothly.