(Updates as shares shrug off early losses)
AMSTERDAM, Sept 28 (Reuters) - **Shares in Netherlands-based ASML, one of the largest suppliers to semiconductor makers, were slightly higher on Monday after the U.S. said it will impose additional restrictions on Chinese computer chip maker SMIC.
**In a note, Citi said it estimates SMIC accounts for 5% of ASML sales, but the company will not be heavily affected.
**ASML shares were up 1.2% at 311.0 euros by 0929GMT. . SMIC shares fell more than 7% in Hong Kong earlier in the day as U.S. suppliers will now have to apply for individual export licenses, according to a letter from the Commerce Department.
**Although not a U.S. company, ASML has already been denied a licence to export its top line equipment to China by the Dutch government due as it is considered to have dual-use military applications.
**Citi said the new U.S. rule would not impact 2020 earnings. However “we do anticipate a cut of ~2-3% to 2021 consensus top line expectations,” it said in a note.
**The analyst noted ASML shares declined by 10% since early September after rumours of the coming U.S. rule change was reported. Shares remain up around 17% year to date.
**”We do see the negative near-term impact as being largely priced in and believe the risk-reward based on long-term fundamentals remains appealing.” (Reporting by Toby Sterling)
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