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ASML Faces New Scrutiny Over Reported China Sales to Military-Linked Firms

ASML says all China transactions comply with export controls.

Overview

  • Dutch broadcaster Nieuwsuur, cited by Reuters, reported that ASML sold parts to a subsidiary of state-owned China Electronics Technology Group based on Chinese trade data.
  • The report also named Shenzhen International Quantum Academy, SiEn (Qingdao) and SMBC, a unit of SMIC, as Chinese recipients of ASML equipment.
  • ASML told Reuters it follows export laws and has described the machines involved as older DUV tools not capable of producing state-of-the-art chips.
  • U.S. semiconductor restrictions limiting China’s access to advanced AI-related chip technology provide the regulatory context for the scrutiny.
  • China accounted for 36% of ASML’s 2024 sales as Goldman Sachs flags AI-driven EUV demand that could exceed 2030 targets and the shares trade near a 52-week high.