US says ASML's top chip tool may be in China. ASML says it isn't
18 hours ago
- #Semiconductor Monopoly
- #Export Controls
- #Geopolitical Tensions
- U.S. Commerce Secretary Howard Lutnick has raised concerns with ASML executives about a possible breach of export controls, alleging that an extreme ultraviolet lithography (EUV) machine may have ended up in China, which ASML denies.
- ASML is a critical monopoly in the global AI buildout, manufacturing the only EUV lithography machines essential for producing cutting-edge chips, with a market cap near $700 billion and significant revenue from China from older-generation tools.
- ASML CEO Christophe Fouquet claims strict tracking and internal firewalls prevent EUV technology from reaching China, and argues that risking the EUV ban for a single illegal sale would threaten the company's revenue and standing.
- The U.S. Commerce Department has invested $150 million in xLight, a startup developing next-generation light-source technology, while a separate startup, Substrate, backed by Peter Thiel, aims to rival ASML more directly, raising questions about potential conflicts of interest.
- A bipartisan bill in Congress proposes extending export bans to include ASML's deep ultraviolet (DUV) shipments to China, which could impact a significant portion of the company's projected 2026 revenue, though the Trump administration has not taken a formal position.