US Questions Whether ASML’s Most Advanced Chipmaking Equipment Has Reached China

US officials have expressed serious concerns that ASML’s most advanced chipmaking systems, known as extreme ultraviolet (EUV) lithography machines, may have made their way to China in violation of export restrictions. EUV systems are crucial for producing cutting-edge semiconductor chips, capable of printing the finest processor patterns, making them strategically sensitive technology.

ASML, the Dutch manufacturer, firmly rejects these claims, stating that no EUV machine has ever been shipped to or installed in China. The company highlights a stringent Dutch licensing framework that regulates all exports of such machinery. Dutch law requires explicit export licenses for EUV systems and more recently extended controls to additional deep ultraviolet (DUV) immersion tools, including the TWINSCAN NXT:1970i and 1980i models.

While the US Commerce Department has not publicly provided evidence to substantiate its concerns, the dispute highlights challenges in enforcing export controls intended to prevent advanced technology from reaching China. These controls intensified across 2023 and 2024 under US urging, with the Netherlands tightening its licensing regimes accordingly.

ASML remains a pivotal company in the global semiconductor supply chain, reporting strong sales and predicting a significant portion of its future revenue will come from existing, permitted sales to China. The Dutch government, however, limits detailed disclosures about ASML’s sensitive technology exports to China for commercial confidentiality reasons, creating a partial picture for investors and policymakers alike regarding the flow of advanced equipment into the Chinese market.

This ongoing tension points to the difficulty Western governments face in fully tracking strategic technology once it leaves manufacturing hubs like Veldhoven. Despite ASML’s commitment to compliance, the question of whether advanced EUV systems have circumvented export rules remains unresolved, raising important questions about the effectiveness of current export control regimes.