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ASML’s China sales spark scrutiny over sensitive tech reaching defence linked entities

Concerns have grown after confidential records revealed that ASML sold key chipmaking parts to Chinese entities with defence links and advanced research roles. The information shows that in 2024, a military research unit under China Electronics Technology Group Corporation and a quantum technology institute both received ASML products, even as Dutch authorities warned of risks connected to China’s military ambitions and human rights issues. Some of the items sold were not covered under strict export authorization rules, allowing them to be shipped without government approval.

The defence linked buyer was the 24th Research Institute of CETC in Chongqing, which works on rocket systems, drones, military computer chips and has contributed to the Shenzhou and Tiangong space programs. ASML stated that it follows all laws and that the items involved were older and generic. The company said its Chinese customers use older technology and added that “national security is the responsibility of governments.” Another major finding showed that ASML supplied a Deep UV lithography machine to the Shenzhen International Quantum Academy on 05 February 2024. The institute focuses on quantum sensing, which Dutch intelligence warns could support military tools such as quantum radar systems capable of detecting submarines.

Experts say the supply of such equipment raises national security questions because quantum technologies are considered sensitive. They also note that only a small number of European companies hold system level importance similar to ASML. It remains unclear what kind of DUV system was delivered and whether export authorization was required. The Dutch foreign ministry said that exports to China’s defence sector are undesirable but added that not all high-tech parts are classified as sensitive. Many machine components are unrestricted and can be exported without controls. However, experts who reviewed the parts involved in these sales said they are essential for chipmaking performance.

Further findings showed that in 2024 ASML also provided products to GTA Semiconductor, which is owned by CEC and to other Chinese chipmakers linked to the military according to United States sanctions lists. These include Si En in Qingdao and Semiconductor Manufacturing Beijing Corporation which is part of SMIC. Analysts say the Dutch government currently lacks full oversight of chip machine parts exports and suggest that broader restrictions could give authorities more control. It remains unknown how chips made with these machines are being used because the Chinese customers did not respond to questions.

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