U.S. Commerce Secretary Howard Lutnick has expressed concerns that Dutch chipmaker ASML's extreme ultraviolet lithography machines may have ended up in China, breaching export controls. Senior administration officials claim to have evidence that ASML shipped EUV-related components and transport equipment to China, although the Commerce Department hasn't released this information publicly.
ASML says no such machine exists in China and has never been sold there. However, the company's monopoly on EUV lithography technology makes it a crucial target for export control regulations. Every cutting-edge processor made by TSMC depends on ASML tools, which took the company two decades and untold billions to develop.
ASML CEO Christophe Fouquet denies any wrongdoing, claiming that the company tracks every machine it has ever shipped and has built an internal firewall to prevent unauthorized access. He argues that it's impossible for China to reverse-engineer a machine they've never had. The Commerce Department hasn't commented on whether it has evidence of an actual EUV system in China.
The allegations have significant implications, as a breach of export controls would allow China to develop advanced AI capability and potentially compromise U.S. security interests. The situation is further complicated by the fact that xLight, a startup developing next-generation light-source technology, received up to $150 million in taxpayer funding from the Commerce Department under Lutnick's leadership.
