Commerce Secretary Lutnick questions ASML over alleged EUV chip machine breach to China; company denies

US Commerce Secretary Howard Lutnick has raised concerns with ASML executives that one of the Dutch chip-equipment company's extreme ultraviolet (EUV) lithography machines may have reached China in violation of US-led export restrictions under the Wassenaar Arrangement. The allegation emerged during a series of recent meetings between Lutnick and ASML leadership. Senior Trump administration officials claim they possess evidence that ASML exported EUV-related components and specialized transport equipment to China, but have declined to disclose this evidence publicly or directly to ASML, citing sensitivity concerns.

ASML flatly denies the allegation, stating it 'has never shipped an EUV machine to China, nor have we shipped to China any component, module or equipment specially designed to be used in an EUV machine.' The company circulated an internal presentation titled 'No indication of any ASML EUV System in China,' claiming it tracks the location of every EUV system it has built (314 currently operating, 26 retired, none in China). ASML notes that an EUV scanner weighs 180 tons, requires air transport across multiple planes, and demands continuous maintenance by ASML engineers—unauthorized transfer would be extraordinarily difficult and would likely cause an international incident.

As of June 19, the US government has not publicly produced evidence that a complete EUV system operates in China. However, the Trump administration is clearly escalating pressure on ASML compliance. A bipartisan bill in Congress—the MATCH Act, passed committee in April—seeks to ban all ASML deep ultraviolet (DUV) tool shipments to China, which would eliminate approximately 20% of ASML's 2026 expected revenue. Additionally, Reuters reported in December 2025 that China had built a prototype EUV machine with help from former ASML engineers, lending some credibility to US concerns about intellectual property leakage.

For practitioners, this represents a critical checkpoint in the US-led chip export regime. ASML is the only commercial EUV supplier; export controls around its equipment are the foundation of Western dominance in advanced semiconductor manufacturing. If an EUV system or sufficient know-how has escaped, it would be a 'catastrophic breach' with years of consequences for TSMC, Intel, and all fabless design houses. Conversely, if US allegations prove unsubstantiated, escalating pressure on ASML could backfire diplomatically and weaken the Wassenaar framework. Watch for Congressional action on the MATCH Act and any Commerce Department formal findings.