US Commerce Secretary Howard Lutnick has repeatedly pressed ASML's management with concerns that the firm's advanced chip manufacturing machines have made it to China. The machines, which rely on extreme ultraviolet light to print circuits on a semiconductor wafer, have been targeted by the US government for being sold to China. However, according to Bloomberg, Secretary Lutnick has raised the issue in several meetings, leading to concerns that China might have made inroads into gaining the ability to make advanced chips.
ASML Denies Any EUV Machines Have Made Their Way Into China
ASML's EUV machines first caught the US government's attention under the first Trump administration in 2020. Back then, media reports suggested that the US had lobbied the Dutch government hard to try to block the sale of the equipment to China. Back then, ASML's export license for the equipment expired, with Reuters reporting that no new license had been granted as of January 2020.
Without these machines, the physical constraints make it difficult to manufacture leading-edge chips with the finest and minutest of circuits. However, according to Bloomberg, an ASML machine might have made its way into China. The concerns were raised by Commerce Secretary Howard Lutnick in several meetings.
ASML Says EUV Machines Require Regular Service & Are Easily Trackable
However, ASML has denied the claims. As reported by DutchNews, the firm has asserted that it remains in compliance with all export control regulations. “ASML has never shipped an EUV machine to China, nor have we shipped to China any component, module or equipment specially designed to be used in an EUV machine,” according to the firm's statement.
ASML added that not only are its machines large enough and produced in low quantities to be easily traceable, but they also require constant servicing. However, Bloomberg also quoted US officials pointing towards exports of EUV equipment to claim that the Dutch company was not acting in good faith.
Bloomberg's report comes after ASML CEO Christophe Fouquet had discussed shipments to China in an interview with the publication. When asked about talk of shipping, he remarked:
“I think you know that in the last few years, we have been subject many times to those kind of negative rumors about what we do. I mean every time the rumors have been quite, I would say, potentially hurtful even for ASML.
“And I want to say it again, we have been following every single rule and we continue to do that. The rules are changing, by the way, quite often, and sometimes something you could do, you cannot do anymore – but when this happens, we change our behavior accordingly.
“I can assure you that there are a lot of people in ASML making sure we comply. Compliance is a very important element in a very difficult geopolitical environment."
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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