A new investigation suggests that equipment from ASML, the world’s leading supplier of semiconductor machinery, has reached a company with ties to the Chinese military. The Dutch television program Nieuwsuur broke the story on Tuesday, reporting that ASML’s client list includes at least one firm connected to China’s defense sector.
According to the report, ASML sold parts to a subsidiary of the state-owned China Electronics Technology Group. This group is a major supplier to the Chinese army. Nieuwsuur stated that their investigation relied on Chinese import and export data to track the flow of these goods. Beyond the military-linked firm, the report identified other specific Chinese buyers. These include the Shenzhen International Quantum Academy and commercial chipmakers such as SiEn (Qingdao) and SMBC. SMBC is a subsidiary of SMIC, China’s largest chip manufacturer.
ASML responded swiftly to the allegations. The company stated it could not confirm the specific details mentioned in the report. However, they emphasized that they strictly follow all export regulations. A spokesperson explained that any equipment they sold either received a government-approved export license or did not fall under current restrictions. ASML typically keeps its customers’ identities private and does not publicly discuss specific contracts.
This situation highlights the difficult position ASML finds itself in within the global tech industry. Based in the Netherlands, the company creates complex lithography systems that manufacturers need to print computer chips. Practically every major chipmaker globally relies on their technology to produce semiconductors. This reliance includes companies in China, which remains ASML’s most significant market. In 2024 alone, Chinese buyers purchased about 10 billion euros ($11.6 billion) in equipment, accounting for 36% of ASML’s total sales.
Western governments continue to tighten rules on the sale of advanced technology to China, fearing that the Chinese military could use these tools to build advanced weapons systems. While ASML insists it abides by every rule, reports like this demonstrate how hard it is to police global supply chains. The company continues to face the challenge of meeting the massive demand from the Chinese electronics sector while navigating increasing regulatory pressure in Europe and the United States.
