Key Takeaways
- Commerce Secretary Howard Lutnick conducted meetings with ASML leadership regarding potential illegal entry of an EUV lithography system into China.
- The Dutch semiconductor equipment manufacturer categorically rejected claims of shipping EUV systems or specialized components to Chinese entities.
- Shares of ASML declined approximately 1.99% after Bloomberg published its initial report.
- Earlier this year, Washington introduced draft legislation demanding allied nations harmonize their export restrictions with US policies on China’s chip manufacturing capabilities.
- Previous reporting in December revealed Chinese researchers constructed an experimental EUV system with assistance from ex-ASML personnel.
Shares of ASML tumbled 1.99% following a Bloomberg News report indicating that Commerce Secretary Howard Lutnick expressed concerns to the company’s top executives about the possibility that one of its cutting-edge semiconductor manufacturing systems may have been delivered to China in violation of international export controls.
The discussions between Lutnick and ASML leadership centered on the firm’s extreme ultraviolet lithography technology, commonly referred to as EUV. These machines represent some of the most sophisticated and heavily regulated equipment in the global semiconductor industry.
ASML responded swiftly to the allegations. In a written statement provided to Reuters, the company declared: “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 statement left no room for ambiguity — and the company maintains its position unequivocally.
The Netherlands-based manufacturer further emphasized that it has “consistently adjusted its business to any development in export controls to comply to any new rules,” while dismissing all accusations of violating export regulations related to China.
For context on the technology involved: ASML’s most sophisticated EUV lithography systems measure approximately the size of a bus used for school transportation and tip the scales at 180 tons. These are hardly items that could be transported covertly.
Washington Intensifies Semiconductor Export Restrictions
The United States has been progressively strengthening its semiconductor export control framework for an extended period. This past April, the administration unveiled proposed legislation designed to compel allied nations to synchronize their export restriction policies — with particular focus on curtailing China’s advanced semiconductor production capabilities.
ASML’s lithography equipment was explicitly referenced in the proposed legislation, highlighting the critical role the Dutch manufacturer plays in this escalating technological and geopolitical contest.
Neither the US Commerce Department nor White House representatives were immediately reachable for commentary when Reuters attempted contact outside standard business hours.
Beijing’s Independent EUV Development Efforts
The broader context surrounding this controversy is significant. Last December, Reuters published a report revealing that Chinese scientists had successfully engineered a prototype EUV lithography system, assembled by a group of engineers who previously worked at ASML.
This initiative was characterized as China’s equivalent to the Manhattan Project — a comprehensive, government-backed endeavor to establish autonomous chipmaking infrastructure independent of Western technology providers and supply chains.
This background likely fuels the US government’s heightened vigilance. If Chinese researchers are already constructing homegrown EUV systems utilizing former ASML expertise, concerns naturally arise that they might also have obtained access to actual production equipment.
Bloomberg’s original report did not specify the method by which equipment might have entered China or present concrete evidence confirming such a transfer. The publication attributed its information to sources with knowledge of the situation.
ASML’s Amsterdam-traded shares (ASML.AS) declined 1.68% following the news, while the company’s US-listed shares dropped 1.99%.
The report emerged on June 18, with Reuters subsequently verifying the core details through ASML’s official statement.
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