Post by : Badri Ariffin

A recent investigation by Dutch television reveals that ASML — the premier global supplier of semiconductor manufacturing equipment — has provided components to at least one Chinese company connected to the military. This buyer is believed to be a subsidiary of China Electronics Technology Group, which is a state-owned enterprise involved in defense and electronics, supplying equipment to the People's Liberation Army.

The investigation is grounded in Chinese import/export records and indicates that ASML has also transacted with other Chinese firms last year, including the Shenzhen International Quantum Academy and chip producers like SiEn (Qingdao) and SMBC, a subsidiary of SMIC.

ASML does not publicly share its customer data. In light of this report, the company stated that it adheres to all applicable export regulations, asserting that all sold equipment was either licensed or not subject to export controls.

This situation is notable as ASML's business dealings with China are significant, with the nation accounting for approximately 36% of its global sales in 2024, estimated at around €10 billion.

Though ASML claims it did not sell its cutting-edge lithography machines (EUV) to China, it argues that the equipment sold cannot facilitate advanced chip manufacturing. However, critics assert that even outdated machines could enhance China's semiconductor production capabilities, potentially benefiting dual-use technologies.

This revelation contributes to heightened scrutiny about supply-chain transparency in the semiconductor sector, particularly regarding sensitive technologies that may reach defense-affiliated organizations.

#Global News