In 2024, ASML sold an essential component for chip machines to a Chinese military research institute. The deliveries raise questions about the effectiveness of Dutch export controls, while the government claims that not all components require a license.
This is according to research by Nieuwsuur. The component ended up at the 24th Research Institute of the China Electronics Technology Group Corporation (CETC). The Chinese government designates this state entity as a military-industrial group and develops high-quality defense technology for missile systems and drones.
According to its own brochures, the institute in Chongqing houses the only national laboratory for military computer chips in China. It also collaborated on the Chinese space program, including the Shenzhou spacecraft and the Tiangong space station.
DUV machine also goes to quantum institute
In addition, on February 5, 2024, ASML delivered a Deep UV lithography machine (DUV) to the Shenzhen International Quantum Academy. This institute conducts research into quantum sensing, a technique for highly accurate measurements.
The MIVD explicitly warns against Chinese interest in quantum sensing. The technology can be used for military purposes, for example, in quantum radars to detect submarines. “There is no doubt that this is sensitive technology,” Rem Korteweg of the Clingendael Institute told Nieuwsuur.
Nieuwsuur was unable to determine what type of DUV machine the institute received. It is also unclear whether ASML needed prior approval from the Ministry of Foreign Affairs.
ASML does not want to comment on individual customers. The company says it strictly adheres to all applicable laws and regulations. “The list you shared with us contains older, generic parts and materials that are not subject to any licensing requirements,” the company said in response to Nieuwsuur’s report.
According to ASML, this concerns old technology that cannot be used to manufacture the most advanced chips. The company further states that suppliers cannot assess for themselves whether a Chinese chip manufacturer should be subject to an export control regime. “National security is the responsibility of governments.”
Components are necessary
The Ministry of Foreign Affairs calls exports to the Chinese defense industry “undesirable for several reasons.” The AIVD and MIVD have long warned that China poses the greatest threat to Dutch economic and knowledge security. China also cooperates militarily with Russia, and Chinese companies supply goods to the Russian war industry.
However, not all high-tech goods require a license. “All components are necessary for a machine to function, but not all components play a crucial/strategic role,” according to the ministry. Products that do not require a license are not subject to control.
More Chinese customers on sanctions lists
The investigation also shows that ASML sold products to chipmaker GTA Semiconductor in 2024. That company is part of CEC, which the Chinese government refers to as a military-industrial group.
Chipmakers Si En (Qingdao) and SMBC, a part of SMIC, were also ASML customers. The US government links these companies to deliveries to the Chinese armed forces and are on US sanctions lists. Nieuwsuur was unable to determine which end products the chips made with ASML machines end up in.
Tip: China expresses dissatisfaction with new ASML restrictions