AMSTERDAM / LONDON (IT BOLTWISE) – Dutch chip supplier ASML is in focus after reports emerged of deals with Chinese companies with military ties. Despite complying with all export laws, the report raises questions about the impact on the global chip industry.
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Dutch chip equipment maker ASML is in the spotlight after reports surfaced about its business ties with Chinese companies with ties to the military. According to a report by Dutch television channel Nieuwsuur, ASML sold parts to a subsidiary of state-owned China Electronics Technology Group, considered a key supplier to the Chinese army. These revelations are based in part on Chinese import and export data.
ASML, considered the largest maker of chip production equipment, has not disclosed information about its customers in the past. The company emphasizes that it complies with all export laws and that all devices sold have either received an export license or are not subject to the restrictions. Still, the report raises questions about the potential impact on the global chip industry, especially given geopolitical tensions between China and Western countries.
China is a significant market for ASML, accounting for around 36% of sales, or around 10 billion euros, in 2024. Reliance on Chinese customers could put the company in a difficult position as Western governments become increasingly concerned about China’s military use of high technology. The reports of ASML’s dealings with Chinese companies that may have military ties could further fuel discussions about export controls and the role of technology companies in geopolitical conflicts.
The revelations come as the global chip industry faces significant challenges, including supply constraints and increasing pressure to diversify production. Experts warn that dependence on Chinese markets and supply chains poses risks that could have not only economic but also security implications. How technology companies like ASML manage their businesses in an increasingly polarized global environment remains a key challenge.
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