A significant dispute has emerged between the United States government and ASML, the Dutch technology giant critical to global semiconductor production. US Commerce Secretary Howard Lutnick has reportedly conveyed to senior ASML executives his concerns that one of the company's highly advanced extreme ultraviolet (EUV) lithography machines may have found its way to China. This would constitute a substantial violation of export controls established to prevent such sophisticated technology from reaching the country.
EUV lithography systems are unique globally in their ability to print the most intricate patterns required for cutting-edge semiconductors. These machines are indispensable for manufacturing the advanced chips that power artificial intelligence (AI) development and other high-tech applications. Export restrictions on ASML selling EUV technology to China have been in place since the Trump administration, making any alleged breach a serious matter for international trade and technological competition.
ASML, Europe's most valuable public company, firmly refutes the US claims. The company maintains that no EUV machine has ever been present in China. Senior US administration officials have reportedly told Bloomberg they possess evidence of ASML shipping EUV-related components and transport equipment to China, though this evidence has apparently not been shared with ASML itself or made public. ASML's CEO, Christophe Fouquet, stated that the company meticulously tracks every machine it ships, ensuring they are either actively used by monitored customers or have been dismantled and returned.
The strategic importance of ASML cannot be overstated. While many outside the chip industry may not be familiar with the company, it holds a near-monopoly on the production of EUV lithography tools. Every advanced processor, including those used by major companies like Nvidia and Apple, relies on ASML's technology. The development of these tools has taken ASML decades and billions in investment, with no current alternative supplier. This unique position underscores the gravity of any potential breach of export controls, as it could significantly impact the global technological landscape and the balance of power in advanced computing.
Beyond the direct allegations, there is a commercial rationale that ASML suggests makes such a breach unlikely. The company currently sells older-generation deep ultraviolet (DUV) tools to China, a market ASML expects to contribute approximately 20% of its 2026 revenue. Risking its entire export license and this substantial revenue stream over a single, illegal EUV sale would represent a significant commercial gamble, potentially jeopardising its position as a leading European industrial monopoly.