It claims the technology was old and "cannot be used to make the most advanced chips."
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .
(Image credit: Getty Images/Rob Engelaar) ASML, a Dutch company renowned as the only one that can produce the latest photolithography machines for fabricating cutting-edge chip designs, is under fire for selling chip fabrication hardware to a Chinese defence firm with ties to the ruling party, as reported by Nos . Although ASML claims that the technology it sold to Chinese chip manufacturers was old and not able to "produce state-of-the-art chips," analysts have still raised concerns over its dealings with a firm developing quantum technologies, which could have implications for military technology development and deployment.
The Dutch government has long been aware of the risks posed by China's access to chip design software and manufacturing hardware. That's partly why there's been such fallout recently around Chinese involvement with Dutch chip firm, Nexperia . But Dutch firm ASML may have had far greater dealings with Chinese businesses, and it's raising more than a few red flags.
Nos claims that the business that purchased the ASML chip manufacturing component was a division of China Electronics Technology Group Corporation (CETC), a Chinese state-owned company that is a key component in the country's military industrial complex, producing key equipment for rocket systems and drones. It has also reportedly worked on the Chinese space program and fabricates chips for military use.
European think tank considers punitive DUV machine export ban following China's latest round of rare earth export controls
China bets on DUV as EUV blockade reshapes chipmaking — but it won't dethrone ASML's advanced lithography, for now
China retaliates in response to Dutch seizure of Nexperia, blocking chipmaker's exports following takeover
Nos has also accused ASML of supplying a deep lithography system (DUV) in its entirety to the Shenzhen International Quantum Academy . This is arguably more notable, as the Dutch Military Intelligence and Security Service has explicitly warned against China's development of quantum technologies.
Although ASML's DUV machines are older designs that produce chips in resolutions of around 38nm (the latest dual-stage extreme ultraviolet (EUV) systems can manage 8nm), analysts are still concerned about the direct provision of such systems, considering the concerns over Chinese technological development.
ASML has said it won't comment directly on sales to customers, but has suggested that what it has transferred to China is not cutting-edge, describing it as "old technology that can't be used to produce state-of-the-art chips." It added: "It is impossible for suppliers, such as ASML, to assess if a chip manufacturer in China should, or should not, be subject to export controls. National security is the responsibility of governments."
Indeed, it highlights that the designs it has sold to Chinese companies are not subject to export controls. This was confirmed when Nos spoke to the Dutch Ministry of Foreign Affairs.
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/asml-under-fire-for-selling-duv-equipment-to-chinese-firm-with-military-ties-says-the-machines-are-not-subject-to-export-controls-fears-grow-that-old-technology-will-bolster-beijings-quantum-effort#main
- https://www.tomshardware.com
- Delivering AI-Ready Enterprise Data With GPU-Accelerated AI Storage
- This GitHub script claims to wipe all of Windows 11's AI features in seconds — "RemoveWindowsAI" can disable every single AI feature in the OS, from Copilot to
- Chinese Navy base 3D imaged to 50cm resolution in single satellite pass — US spatial intelligence firm boasts accurate high-res 3D terrain map took just 10 hour
- Robots’ Holiday Wishes Come True: NVIDIA Jetson Platform Offers High-Performance Edge AI at Festive Prices
- NVIDIA Awards up to $60,000 Research Fellowships to PhD Students
Informational only. No financial advice. Do your own research.