Dutch chipmaking supplier ASML claims a Chinese employee stole data

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According to The Verge, ASML says a former employee in China had stolen the manufacturing secrets. ASML is a Dutch company that provides the semiconductor industry with chipmaking equipment. It’s one of the industry’s largest suppliers and the only producer of extreme ultraviolet (EUV) lithography photolithography machines.

ASML has revealed the data breach in its 2022 annual report, describing the incident as an “unauthorized misappropriation of data” that was quickly investigated. The company believes the stolen data can’t harm its ongoing business. However, some “export control regulations” might be violated by employees, and they’re “implementing additional remedial measures in light of this incident.”

The Dutch company also didn’t clarify the type of data stolen and how it can affect its proprietary technology. Of course, this is the second year in a row that ASML has reported its data being stolen in China. In its 2021 annual report, ASML accused China-based firm DongFang JingYuan Electron of stealing intellectual property.

ASML manufacturing secrets will help China empower its domestic semiconductor industry

The Chinese spies have also chosen the right company. ASML technology is now used to manufacture high-end chips from TSMC and Intel. Also, the Dutch company controls over 90% of the global market for chipmaking lithography equipment as of 2021.

Chinese industrial espionage has targeted many industries, but the semiconductor industry has particular importance to Beijing. Given that China is the world’s largest importer of semiconductors, it is trying to reduce its reliance on Western technology and build its chips inside the country.

After the US administration imposed several bans on exporting chip tech to China, Beijing wants to fight back with domestic chip production. Back in 2018, the Dutch government also prohibited ASML from exporting EUV machines to China following pressures from the US government.

Taiwan, South Korea, and China are the three biggest markets for ASML. The company CEO Peter Wennink already warned that such restrictions will guide Beijing toward “tech sovereignty.” In China’s case, it can be “real tech sovereignty.” Wennink also said China is able to produce its required technology in 15 years and cut ties with European suppliers.

2023-02-20 15:06:11