Intense technological tension between the United States and China is deepening, placing ASML, a Dutch company with a monopoly in the production of EUV lithography machines, at the center of the debate. This equipment is crucial for manufacturing the most sophisticated semiconductors in the world.
Authorities in Washington raised the suspicion that one of these sophisticated pieces of equipment, whose sale to China has been banned since 2019, may have been clandestinely taken to the Asian country, generating strong pressure on the company.
ASML vehemently denies the accusations, stating that all approximately 340 EUV machines manufactured since the technology’s launch are individually monitored and that none of them are located on Chinese territory.
The Dutch manufacturer also emphasizes that the transportation, installation, maintenance and replacement of parts of these machines are carried out exclusively by its teams, which would make it virtually impossible to divert a complete piece of equipment without its knowledge.
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To date, the United States government has not publicly released evidence to support its claim.
Even without confirmation, the situation increased the level of friction between Washington and The Hague, which already demonstrated differences regarding the intensity of export controls for the Chinese semiconductor industry.
Understand the central role of equipment in the dispute for artificial intelligence
The equipment in question is widely recognized as one of the most complex industrial systems ever developed.
EUV machines, which use extreme ultraviolet light to etch tiny circuits onto silicon wafers, enable the production of the latest chips. These components are essential for technologies such as artificial intelligence, cutting-edge smartphones, supercomputers and military weapons.
No other company globally dominates this manufacturing technology, which depends on a complex network of suppliers from Germany, the United States and Japan, in addition to ASML itself.
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For this reason, imposing barriers to China’s access to these machines has become a cornerstone in the American strategy to slow down Beijing’s technological advancement.
What motivates the United States’ apprehension about Chinese technology
Even without concrete signs that an EUV system has reached China, American officials are expressing growing concern about the progress of the Chinese semiconductor industry.
In recent years, Chinese companies such as SMIC and Huawei have been able to produce cutting-edge chips using older equipment known as DUV (deep ultraviolet lithography).
Through a multi-patterning methodology, Chinese manufacturers managed to circumvent the restrictions imposed by the United States, although this process is more costly, time-consuming and has a higher incidence of failures.
For some American analysts, this development represents a diminution of Western technological advantage and could enable China to manufacture millions of advanced chips, enough to boost its artificial intelligence industry.
Beijing steps up efforts to develop its own manufacturing technology
Facing export barriers, the Chinese government is also committed to developing a national alternative to ASML technology.
Information reported by Reuters at the end of 2025 indicated that a group of former engineers from the Dutch manufacturer collaborated in the development of a Chinese prototype EUV machine, currently in the testing phase in Shenzhen.
Although the equipment has not yet produced functional chips, Chinese authorities have set 2028 as a target to achieve this objective.
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Industry experts see this schedule as ambitious, however, they recognize that Chinese technological advancement has exceeded expectations in recent years.
How Europe seeks to reconcile commercial interests and security concerns
The controversy also highlights differences between the United States and Europe over the best approach to China’s technological rise.
The Asian nation represents a significant portion of ASML’s revenue, mainly in the sale of DUV equipment, which is not yet fully subject to international restrictions. In 2025, approximately one-third of the company’s revenue came from the Chinese market.
The Dutch government asserts that it strictly enforces existing export controls, but resists American pressure to further intensify these restrictions.
Officials in The Hague argue that new barriers could harm European companies without necessarily impeding Chinese technological progress.
The disagreement intensified after American parliamentarians introduced the MATCH Act bill, which proposes to ban not only new sales of DUV equipment to China, but also prevent companies like ASML from providing maintenance, parts and software updates for hundreds of machines already in operation in the country.
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If allied governments do not implement similar measures, Washington plans to use American legislation mechanisms to force foreign companies to adhere to the restrictions, an initiative that generates great concern among several European nations.
The geopolitics of technology: understand the new front of global dispute
The controversy surrounding ASML highlights how semiconductors have become a resource as strategic as oil in the geopolitical disputes of the 21st century.
More than a simple industrial equipment company, the Dutch manufacturer has become a fundamental asset for the balance of power between the United States and China.
Dominance over the production of the most advanced chips now impacts areas ranging from the development of artificial intelligence models to national security, including military applications and high-performance computing.
Even if suspicions of a possible diversion of EUV machines are not proven, analysts believe that the episode represents just another chapter in the growing global race to control the infrastructure that will support the next generation of digital technologies, highlighting the complexity of interdependence and competition in the digital era.