Concerns Rise as ASML Supplies Military-Linked Chinese Firm

A recent investigation by Dutch television reveals that ASML — the premier global supplier of semiconductor manufacturing equipment — has supplied components to several Chinese companies, including one allegedly connected to the Chinese military. This buyer is reportedly a subsidiary of China Electronics Technology Group, a state-run defense and electronics firm serving the Chinese army.

The findings, derived from Chinese import/export data, show that ASML has also provided equipment to other Chinese organizations like Shenzhen International Quantum Academy, as well as chipmakers SiEn (Qingdao) and Semiconductor Manufacturing Beijing Corporation (SMBC), which is part of SMIC.

ASML does not publicly share customer details. In light of these reports, the company asserts that it adheres strictly to all export regulations, claiming that all sold equipment was either licensed or not subject to any restrictions.

This revelation is significant, particularly as ASML’s dealings with China continue to be considerable, with China accounting for approximately 36% of its worldwide sales in 2024—amounting to around €10 billion.

While ASML did not provide its most advanced lithography systems (EUV) to China, it argues that the sold equipment is not viable for cutting-edge chip fabrication. However, critics contend that even older machines can enhance China's semiconductor manufacturing capabilities, possibly benefiting dual-use technologies.

This report fuels increasing global scrutiny over transparency in the semiconductor supply chain, especially regarding sensitive technology potentially falling into the hands of defense-associated entities.