ASML, a prominent semiconductor equipment manufacturer, has reported a decline in profits amidst escalating tensions with China over chip technology. The Dutch company, known for its advanced lithography machines used in the production of cutting-edge chips, is facing challenges in the Chinese market.

The ongoing trade dispute between the US and China has spilled over into the semiconductor industry, with ASML caught in the crossfire. The company’s profits have taken a hit as Chinese customers delay or cancel orders in response to restrictions on the export of advanced chip-making technology.

ASML’s CEO expressed concerns about the impact of the geopolitical tensions on the company’s bottom line. The uncertainty surrounding future orders from China has led to a cautious outlook for the coming quarters.

Despite the challenges, ASML remains optimistic about its long-term prospects. The company continues to invest in research and development to maintain its technological edge in the semiconductor market.