US raises concerns to ASML about China’s access to top chip tools

The US government has directly told ASML, the world’s sole manufacturer of extreme ultraviolet lithography machines, that it is worried China may be acquiring the company’s most advanced chip-making tools. Commerce Secretary Howard Lutnick raised the issue in meetings with ASML executives, according to a Bloomberg report.

ASML’s response was unequivocal: it has never shipped any EUV systems to China, and none are operating in the country.

What’s actually going on

EUV lithography machines use light with wavelengths of just 13.5 nanometers to etch circuit patterns onto silicon wafers, enabling the production of the most advanced chips on the planet. ASML is the only company in the world that makes them.

The Netherlands has already aligned its export control policies with the US, specifically preventing EUV tools from being sold to China since around 2019.

The bigger picture: years of tightening the screws

The US has been working to limit China’s semiconductor manufacturing capabilities for years. The effort kicked into higher gear in 2022, when the Biden administration rolled out sweeping export controls aimed at curbing Beijing’s progress in artificial intelligence and high-end computing.

A proposed piece of legislation called the MATCH Act, expected in 2026, would expand restrictions beyond EUV to include deep ultraviolet lithography systems and their associated service mechanisms. China has reportedly been stockpiling allowed DUV equipment in anticipation of tighter rules.

What this means for investors

The proposed MATCH Act adds another layer of uncertainty. If DUV systems become subject to the same kinds of restrictions currently applied to EUV machines, ASML could lose a meaningful chunk of its China-related revenue. The company has historically generated significant sales from DUV equipment shipped to Chinese customers.

ASML’s denial is important context here. The company says it hasn’t violated any export controls, and there’s no public evidence to suggest otherwise. But the fact that the US Commerce Secretary felt compelled to raise the issue directly signals that enforcement scrutiny is intensifying.

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