As one of the world's largest semiconductor markets, China is actively promoting the development of the semiconductor industry, and the demand for high-quality and high-performance lithography machines is growing. As the Netherlands gave ASML an export license before the end of this year, Chinese customers have seized the opportunity and placed a large number of orders, which has created a huge contribution to ASML's performance in the Chinese market. According to statistics, ASML has successfully shipped 1,400 lithography machines. This has also enabled ASML to continue to grow its shipments to China for three consecutive quarters, with a year-on-year increase of 1850%. The U.S.-based lithography machine manufacturer has recognized the huge potential of the Chinese market and is willing to meet the demand for lithography machines in the Chinese market and support the development of China's semiconductor industry.
The United States has reached a tripartite agreement with the Netherlands and Japan, and each of the three countries has implemented corresponding export restriction rules. Among them, the Netherlands began to implement export restrictions on DUV lithography machines in September last year, but at the same time gave ASML an export license, which will expire next year. Japan added 23 types of semiconductor equipment to its export control list by July 23 this year. The United States, on the other hand, has maintained a high level of attention in the field of AI chips, which has had a negative impact on Nvidia. However, the United States found it easier for the Netherlands to compromise and gave ASML the opportunity to ship in large quantities. This made the United States** feel abandoned and considered the tripartite agreement to be invalid. In fact, from the outset, the United States has mistakenly chosen to pull down countries that do not want to participate, but it has not been able to get other countries to follow its technical rules. The semiconductor industry is highly globalized, and all parties are interdependent, and the United States should know that if it can't sell chips, then chips can only be tied up in their hands and can't bring any benefits.
Through the performance of the Chinese market, we can see the importance of the Chinese market to ASML. In the first three quarters of this year, the Chinese market's share of ASML's revenue increased rapidly from 8% in the first quarter to 46% in the third quarter. This means that the revenue contribution of the Chinese market has doubled many times, making ASML make a lot of money. This also proves the huge potential of the Chinese market and the continuous demand for lithography machines. Based on current trends, ASML shipments to the Chinese market will continue to increase. At the same time, the Dutch lithography industry chain can benefit from ASML's success. However, for abandoned U.S. businesses, they may begin to reflect on their own bad decisions and realize the importance of working with other countries.
As an important link in the global semiconductor industry chain, China has not only developed rapidly in terms of technological innovation and market demand, but also continued to expand in terms of policy support and market scale. With the acceleration of a new round of scientific and technological revolution, China's semiconductor industry is facing huge opportunities and challenges. It is believed that China will further increase its support for the semiconductor industry and promote technological innovation and market competitiveness. Against this backdrop, the demand for lithography machines in the Chinese market will continue to grow, bringing a broad space for ASML and other lithography machine manufacturers to grow. At the same time, China will further promote the development of the local lithography machine industry to reduce its dependence on imported lithography machines and make greater breakthroughs in core technology and market share.
As can be seen from this article, the importance of the Chinese market for ASML lithography machines is self-evident. The Netherlands granted ASML an export license in the Chinese market, which made ASML's lithography machine a great success in the Chinese market. However, the United States felt abandoned because they had a setback in the lithography machine industry. The significant increase in the contribution of the Chinese market to ASML's performance is also a testament to the huge potential and continued demand of the Chinese market. In the future, the Chinese market will continue to grow and bring more opportunities and challenges to lithography machine manufacturers. At the same time, China will also strengthen the development of the local lithography machine industry, achieve independent control, and play a more important role in the global semiconductor industry chain.