Asia Tech Wire (Apr 18) -- Dutch chip equipment giant ASML said the company is still providing servicing in China.

This follows reports that the U.S. government plans to pressure the Netherlands to restrict ASML's ability to provide maintenance and servicing to some equipment sold to Chinese chipmakers.

In response, ASML CEO Peter Wennink said Wednesday on an earnings conference call that there was currently no reason the company could not provide servicing for equipment it had sold to Chinese customers.

The U.S. government has restricted U.S. firms from servicing equipment at advanced Chinese factories, but the Dutch government has not gone that far yet.

"That has been a discussion between the two governments," Wennink said. "We are providing them with information."

But Wennink emphasized, "There's nothing that stops us servicing the installed base in China today."

China remains ASML's biggest market, even though the company has stopped exporting high-end chip manufacturing equipment to China since January, when new Dutch export controls came into effect.

ASML's latest financial report showed that sales to China accounted for 49% of its total sales in the first quarter of this year, or about 2 billion euros.

ASML expects the export controls to affect 15% of its sales in China this year.

However, ASML CFO Roger Dassen said Wednesday that strong demand in China is expected to continue through the rest of the year.

Dassen revealed that Chinese customers represented about 20% of the company's order backlog.