ASML says ex-China employee misappropriated data relating to its critical chip technology

ASML, 1 of the world's astir captious semiconductor firms, said Wednesday that it precocious discovered that a erstwhile worker successful China had misappropriated information related to its proprietary technology.

The Dutch steadfast said that it does not judge the alleged misappropriation is worldly to its business.

"We person experienced unauthorized misappropriation of information relating to proprietary exertion by a (now) erstwhile worker successful China," ASML said successful its yearly report.

"However, arsenic a effect of the information incident, definite export power regulations whitethorn person been violated. ASML has truthful reported the incidental to applicable authorities."

The information that was misappropriated progressive documents. ASML did not grow connected the details.

The information incidental comes astatine a delicate clip for ASML and the authorities of the Netherlands which has been caught successful the mediate of a battle for tech supremacy betwixt the U.S. and China. Semiconductors are precise overmuch portion of that rivalry.

ASML holds a unsocial presumption successful the spot proviso chain. The institution makes a instrumentality called an utmost ultraviolet lithography machine that is required to marque the astir precocious semiconductors, specified arsenic those manufactured by TSMC. ASML is the lone institution successful the satellite that produces this portion of kit.

The U.S. is disquieted that if ASML ships the machines to China, chipmakers successful the state could statesman to manufacture the astir precocious semiconductors successful the world, which person extended subject and precocious artificial quality applications.

Since 2018, the U.S. has reportedly enactment unit connected the Dutch authorities to halt ASML shipping EUV machines to China. ASML has ne'er shipped the instrumentality to China.

Last month, Bloomberg reported that the U.S. reached an statement with Japan and the Netherlands to restrict exports of precocious chipmaking machinery to China.

ASML said the statement could screen its precocious chipmaking tools but it does not expect the measures to person a worldly effect connected its 2023 expectations.

"We recognize that steps person been taken that would screen precocious lithography tools arsenic good arsenic different types of equipment. The presumption of this statement person not been publically disclosed and stay confidential for now. We expect that it volition instrumentality galore months for the governments to constitute and enact caller rules," ASML said Wednesday.

The latest study of information misappropriation successful China is not the archetypal incidental that ASML has alleged that it has experienced.

In 2021, the ASML alleged a institution called Dongfang Jingyuan Electron "was actively selling products successful China that could perchance infringe connected ASML's IP rights."

ASML alleges that Dongfang Jingyuan Electron is associated with XTAL Inc., a institution against which ASML had obtained a harm grant for commercialized concealed misappropriation successful 2019 successful the U.S.

Donfang Jingyuan Electron has denied reports astir intelligence spot theft.

ASML said successful a abstracted connection Wednesday that it is seeing an accrued fig of attempts from actors trying to bargain its technology.

"With ASML's unsocial presumption and the increasing geopolitical tensions successful the semiconductor industry, we spot expanding information hazard trends, ranging from ransomware and phishing attacks to attempts to get intelligence spot oregon disrupt concern continuity," a spokesperson said.

China meantime is trying to boost its ain semiconductor manufacture against a backdrop of rising hostility with the U.S. But China's spot capabilities stay acold down the likes of the Taiwan, South Korea and the U.S.

China does not person immoderate companies that tin nutrient the tools that ASML does. Without ASML's machinery, it volition beryllium hard for China to manufacture the astir precocious chips. Meanwhile, the U.S. introduced sweeping export restrictions successful October aimed astatine cutting China disconnected from obtaining oregon manufacturing cardinal chips and components. Experts previously told CNBC that these factors would apt hobble China's thrust to boost its home spot industry.