Concerns Arise as ASML Sells Chip Tools to Military-Linked Chinese Firm

Post by : Bianca Suleiman

A recent investigation by a Dutch television network reveals that ASML — the leading supplier of semiconductor production equipment — has allegedly supplied components to at least one Chinese entity associated with the nation's military. This buyer is reportedly a subsidiary of the state-owned China Electronics Technology Group, which provides hardware for the Chinese armed forces.

The investigation's findings are drawn from Chinese import/export records and reveal that ASML also sold equipment last year to other Chinese companies, including Shenzhen International Quantum Academy and semiconductor manufacturers SiEn (Qingdao) and Semiconductor Manufacturing Beijing Corporation (SMBC), a subsidiary of SMIC.

ASML does not publicly reveal specifics regarding its clientele. In response to these allegations, the company stated that it adheres to all export regulations and asserts that the equipment provided was either properly licensed or not subject to any restrictions.

This situation is noteworthy due to ASML’s significant business ties with China, which constituted around 36% of its global sales in 2024, amounting to nearly €10 billion.

While ASML claims it did not supply its most advanced lithography machines (EUV) to China, limiting the sold equipment's applicability for high-end chip manufacturing, critics assert that even these “older” machines might enhance China's semiconductor production capabilities, potentially aiding dual-use technologies.

This report highlights the increasing international attention on supply-chain transparency within the global semiconductor sector, particularly concerning sensitive technologies that could be funneled to defense-associated organizations.