The U.S. government suspects a top chipmaking tool from Dutch monopolist ASML may be in China, violating strict export controls. Commerce Secretary Howard Lutnick has raised concerns, which ASML vehemently denies, stating it has never shipped an EUV machine there. The dispute highlights tensions over curbing China's tech ambitions and comes as the Commerce Department invests in a potential ASML competitor.
EUV export control allegations
- ▪U.S. Commerce Secretary Howard Lutnick told ASML that Washington is concerned one of its extreme ultraviolet (EUV) lithography machines may be in China
- ▪A transfer of an EUV machine to China would violate U.S.-led export controls that have barred ASML from selling the tools to China since the first Trump administration
- ▪ASML stated it has never shipped an EUV machine, or any component specifically designed for one, to China
- ▪Senior U.S. administration officials claim to have evidence that ASML shipped EUV-related components and transport equipment to China, but have not publicly shown it
- ▪ASML CEO Christophe Fouquet said the company tracks every machine it has ever shipped and uses an internal firewall to restrict EUV technology access from China-based staff
ASML lithography monopoly
- ▪ASML's EUV systems are roughly the size of a school bus and weigh 180 tons
- ▪ASML is Europe's most valuable public company, with a market capitalization of approximately $700 billion as of June 2026
- ▪Cutting-edge processors from TSMC for clients like Nvidia and Apple depend on ASML's EUV tools
- ▪ASML is the sole global supplier of extreme ultraviolet (EUV) lithography machines, which are essential for producing the most advanced semiconductors
ASML China revenue strategy
- ▪ASML sells older-generation deep ultraviolet (DUV) lithography tools to China
- ▪ASML's CEO described selling older DUV tools to China as a "protective calculation" to maintain a technological gap with Chinese firms
- ▪ASML expects approximately 20% of its 2026 revenue to come from permitted sales of older equipment to China
Commerce Department xLight investment
- ▪The U.S. Commerce Department, under Secretary Lutnick, agreed in late 2025 to invest up to $150 million in xLight, a startup developing light-source technology
- ▪ASML's CEO Christophe Fouquet indicated that the company does not see itself as needing xLight's technology to maintain its lead
- ▪xLight's technology has been described as a potential long-term challenge to the core of ASML's EUV monopoly
Congressional DUV ban proposal
- ▪A bipartisan bill moving through the U.S. Congress proposes a ban on all of ASML's deep ultraviolet (DUV) shipments to China
- ▪The proposed DUV ban bill cleared a key committee in April 2026
- ▪In April 2026, the U.S. proposed a law requiring allies to align with its export controls to curb China's semiconductor capabilities
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