US Raises Alarm: Is ASML's Top Chip Tool Operating in China? ASML Says No

A new wave of tension has emerged in the global semiconductor industry, a sector at the very heart of artificial intelligence advancement. The United States government has reportedly conveyed serious concerns to ASML, the Dutch giant that holds a unique monopoly on the world's most advanced chipmaking equipment, suggesting that one of its top-tier Extreme Ultraviolet (EUV) lithography machines might have made its way into China, potentially violating stringent export controls. ASML, however, has vehemently pushed back against these claims, asserting that no such machine has ever been shipped to or is currently operating within China. This high-stakes dispute underscores the intensifying geopolitical competition over advanced semiconductor technology, a critical determinant for national security, economic power, and leadership in the burgeoning field of artificial intelligence.

The Core of the Controversy: EUV Lithography Machines

At the center of this controversy are ASML's Extreme Ultraviolet (EUV) lithography machines. These aren't just any industrial tools; they are colossal, highly complex systems that are indispensable for manufacturing the most advanced semiconductor chips, those with features at 5 nanometers and below. These cutting-edge chips power everything from the latest smartphones to sophisticated data centers and, crucially, the powerful Graphics Processing Units (GPUs) that drive AI development and deployment. ASML stands alone as the world's sole commercial producer of these highly specialized EUV systems. This unparalleled position means that any nation aiming to produce state-of-the-art chips is, by necessity, reliant on ASML's technology. The development of these machines took ASML decades and billions of dollars in investment, involving a vast ecosystem of suppliers across 16 countries. Each EUV machine is a marvel of engineering, roughly the size of a school bus, weighing approximately 180 metric tons, and costing hundreds of millions of dollars. The newest High NA models are even more expensive, reportedly around $400 million each. Their intricate design requires constant, specialized maintenance and support from ASML's own engineers to function correctly and reliably.

US Concerns and ASML's Firm Denial

According to reports from Bloomberg News, US Commerce Secretary Howard Lutnick recently communicated Washington's concerns directly to ASML's senior leadership. The US officials reportedly suggested that an EUV machine might be operational in China, which would constitute a significant breach of the export restrictions that have been in place since 2019. These restrictions, imposed under pressure from the US and enforced by Dutch export rules, have explicitly barred the sale of EUV technology to China. However, ASML has unequivocally denied these allegations. A spokesperson for the company stated, "ASML has never shipped an EUV machine to China nor have we shipped to China any component, module or equipment specially designed to be used in an EUV machine." The company has reportedly circulated documents in Washington to support its claim, asserting that none of its 314 active EUV systems worldwide are located or operating in China. The sheer size, complexity, and continuous service requirements of these machines make it incredibly difficult, if not impossible, for one to be secretly transported, installed, and operated without ASML's knowledge. Senior US administration officials have reportedly claimed they possess evidence indicating that ASML may have shipped EUV-related components and transport equipment to China. However, these officials have so far declined to disclose this evidence, citing its sensitive nature, even to ASML itself. The US Commerce Department has not publicly commented on whether it holds definitive proof of an actual EUV system being on Chinese soil.

The Broader Geopolitical Landscape of Chip Controls

This latest development is not an isolated incident but rather a continuation of a multi-year effort by the United States to curb China's ability to develop advanced semiconductor manufacturing capabilities. The Biden administration significantly intensified these export controls in 2022, specifically targeting technologies that could advance China's artificial intelligence and high-end computing sectors, which have clear military applications. The strategic importance of ASML's technology cannot be overstated. Companies like Taiwan Semiconductor Manufacturing Company (TSMC), which manufactures processors for industry leaders such as Nvidia and Apple, depend entirely on ASML's EUV tools for their cutting-edge production. Limiting China's access to this technology is seen by the US as a critical "chokepoint" to maintain its technological lead in the global AI competition.

China's Domestic Efforts and the "Manhattan Project"

Despite the stringent export controls, China has been actively pursuing its own domestic capabilities in advanced chip manufacturing. Reuters reported in December (of the previous year, 2025) that Chinese scientists, with the assistance of former ASML engineers, have developed a prototype EUV machine. This ambitious undertaking has been likened to "China's version of the Manhattan Project," highlighting its strategic national importance. However, while this prototype reportedly succeeded in generating EUV light, it had not yet produced a working chip at the time of the report. ASML's CEO, Christophe Fouquet, has previously stated that China remains "years behind the frontier" in advanced lithography technology. This suggests that even with significant domestic investment and talent acquisition, replicating ASML's decades of R&D and intricate global supply chain is an immense challenge.

Impact on ASML's Business and Future Restrictions

While EUV machines have been off-limits to China for years, China has remained a substantial market for ASML's older Deep Ultraviolet (DUV) lithography systems. In 2025, China accounted for approximately one-third of ASML's total revenue from system sales. However, due to tightening restrictions, ASML projects this share to decrease to around 20% in 2026. The pressure on ASML is only expected to grow. In April 2026, US lawmakers introduced the "Multilateral Alignment of Technology Controls on Hardware" (MATCH) Act. This proposed bipartisan legislation aims to further tighten export restrictions, potentially extending the ban beyond EUV systems to include DUV immersion machines and even the servicing and maintenance of existing ASML equipment already in China. The MATCH Act would also impose a 150-day deadline for US allies, including the Netherlands, to align their export controls with US standards, with potential repercussions like sanctions for non-compliance. Such expanded restrictions would significantly impact ASML's business in China, not only by limiting new sales but also by affecting its high-margin service operations for previously sold DUV equipment. ASML has consistently stated its commitment to complying with all applicable export control regulations from both the US and the Netherlands, emphasizing its transparent dialogue with governments globally.

The Commercial Logic and Reputation at Stake

From a commercial standpoint, ASML has a strong incentive to comply with export controls. Its global leadership and access to critical markets depend on maintaining good relations with governments, especially the US, which can exert significant influence over its operations through extraterritorial authorities. Deliberately violating export licenses for a high-value, easily traceable asset like an EUV machine would carry immense risks, potentially jeopardizing its entire business model and reputation. The company has previously refuted what it called "unfounded rumors regarding non-compliance with export controls concerning China," deeming them "inaccurate and damaging to our reputation." The current situation puts ASML in a challenging position, having to "prove a negative" – that an EUV machine is not in China. The lack of public evidence from the US side, despite claims of possessing it, further complicates the matter. This ongoing scrutiny highlights the delicate balance ASML must maintain between its commercial interests in a major market like China and its adherence to international export regulations driven by geopolitical considerations. The outcome of this dispute will undoubtedly have lasting implications for the global semiconductor supply chain and the future of AI development.

Frequently Asked Questions

What are ASML's EUV lithography machines and why are they important?

ASML's Extreme Ultraviolet (EUV) lithography machines are highly advanced systems used to print microscopic circuit patterns onto silicon wafers, enabling the production of the most cutting-edge semiconductor chips. These chips are essential for advanced technologies like artificial intelligence, high-performance computing, and modern electronics. ASML is currently the only company in the world that manufactures these machines.

Why is the US concerned about these machines being in China?

The US government views access to advanced chipmaking technology, particularly ASML's EUV machines, as a critical national security issue. Restricting China's access to this technology is part of a broader strategy to limit its advancements in areas like artificial intelligence and high-end computing, which could have military applications.

What is ASML's response to the US allegations?

ASML has strongly denied the US government's concerns. The company states that it has never shipped an EUV machine, or any components specifically designed for an EUV machine, to China. ASML also emphasizes that none of its EUV systems are currently operating in China.

What are the implications of the proposed MATCH Act?

The proposed MATCH Act is a US legislative initiative that aims to further tighten export controls on semiconductor manufacturing equipment to China. If passed, it could extend restrictions beyond EUV machines to include certain Deep Ultraviolet (DUV) lithography systems and even the servicing of existing equipment in China. It also seeks to compel US allies, including the Netherlands, to align their export control policies with those of the US.