US Expresses Concern over ASML EUV Chip Tool Transfer to China

The US government has told ASML it is concerned that one of the Dutch company's most advanced extreme ultraviolet (EUV) lithography machines may have reached China in violation of export controls. Commerce Secretary Howard Lutnick raised the issue directly with senior ASML executives in recent meetings, and the report pressured ASML shares lower.

ASML has firmly denied any breach, stating it has never shipped an EUV system to China, nor any component, module or equipment specifically designed for use in an EUV machine. The company reiterated its commitment to export-control compliance, while the exact basis for Washington's concern remains unclear. Administration officials have said they hold evidence that EUV-related components and transport equipment were shipped to China but have so far declined to make it public.

EUV systems are the most tightly restricted tools in the semiconductor supply chain, and ASML has been barred from selling them to China since 2020 because they would give Chinese foundries access to leading-edge chipmaking. The dispute injects fresh political risk into ASML's China business at a time when the country remains a meaningful revenue source, and it underscores the widening US-China technology standoff. Investors will watch whether Washington produces evidence or escalates with new restrictions, either of which could weigh on ASML's order book and its exposure to Chinese demand.