ASML Chip Tech Dispute
US Expresses Concern ASML Chip Machine May Have Reached China; ASML Firmly Denies Shipments
Key Points
ASML said it has never shipped not only EUV machines to China, but also “any component, module or equipment specially designed to be used in an EUV machine,” according to a spokesperson quoted by Bloomberg and reported by Reuters.
Reuters reported ASML’s most advanced EUV systems are “roughly the size of a school bus and weigh 180 tons,” underscoring the physical and operational challenges that ASML says limit any alleged transfer.
The report framing the concern noted that U.S.-led export controls rely on cooperation with key allied suppliers, including the Netherlands and Japan, and that ASML has been unable to sell its most advanced EUV systems to China due to licensing restrictions.
A Reuters reference point included a December report that Chinese scientists developed an EUV machine prototype built by former ASML engineers—an effort Reuters described as “China’s version of the Manhattan Project.”
U.S. Commerce Secretary Howard Lutnick has raised concerns with ASML's top leadership over reports that one of the Dutch company's advanced chipmaking machines may have reached China, possibly breaking U.S.-led export rules, according to Bloomberg. ASML pushed back firmly, saying it has never shipped an EUV — extreme ultraviolet — machine to China, nor "any component, module or equipment specially designed to be used in an EUV machine."
The standoff puts a spotlight on ASML, the world's only maker of EUV lithography tools. These machines are the sole way to mass-produce the most advanced chips — the kind that power AI systems and military hardware. Washington has spent years trying to keep them out of Chinese hands.
Why an EUV Machine Is So Hard to Hide
ASML's EUV systems are not easy to smuggle. A single machine is roughly the size of a school bus and weighs 180 tons, according to Reuters. Moving one requires 40 trucks and three Boeing 747 cargo jets. Each system contains over 100,000 individual parts sourced from more than 5,000 global suppliers. One unit costs between $180 million and $350 million.
ASML's CEO Christophe Fouquet put it plainly: "An EUV machine is not a suitcase you can sneak across a border. These are 180-ton systems that require constant, specialized upkeep from our engineers." The company says the machines need a steady flow of software updates and specialist support from its headquarters in the Netherlands just to keep running.
Washington Pushes Hard on Export Control Violations
Lutnick held an emergency meeting with ASML leadership after technical reports flagged possible EUV-level activity at a facility in Shanghai, according to Bloomberg. He warned that any breach of export rules would be treated as a serious failure of the multilateral system Washington has built with allies including the Netherlands and Japan.
The Dutch government has blocked ASML from selling EUV machines to China since 2019, under heavy U.S. pressure. In early 2024, ASML also began canceling shipments of its top DUV — deep ultraviolet — machines to China. DUV tools are older and less powerful than EUV, but China still managed to use them to build 7nm chips, as shown by Huawei's Mate 60 Pro phone in September 2023, Reuters reported.
China's Secret Push to Build Its Own EUV Machine
Even if no physical machine was moved, the bigger worry may be human knowledge leaving ASML. A December 2025 Reuters report revealed that roughly 12 to 15 former ASML engineers had relocated to China between 2021 and 2024. These so-called "Veldhoven Expatriates" are believed to be helping China build its own EUV prototype — an effort Reuters described as "China's version of the Manhattan Project."
China's approach reportedly centers on a particle accelerator in Beijing that generates the extreme ultraviolet light needed for chip production, bypassing the need for an ASML machine entirely. Analysts at the Center for a New American Security warned that this path may be more dangerous than any physical smuggling. "Hardware can be blocked; brains cannot," one senior fellow noted.
Market Jitters and What Comes Next
ASML's stock fell 4.2% when the news broke. Analysts at Jefferies and Goldman Sachs fear the U.S. could invoke the "Foreign Direct Product Rule" to block all remaining ASML sales to China. That step would be severe — China made up between 20% and 49% of ASML's quarterly revenue in 2024 and 2025, mostly from older DUV machines, according to ASML's annual reports.
The Dutch government is trying to slow things down. Prime Minister Dick Schoof called for a "calm and evidence-based investigation" before any new sanctions are imposed, according to MarketScreener. The U.S. and Dutch authorities have now launched a joint probe into possible "grey market" leakage of EUV components through shell companies in Malaysia and Singapore.
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