ASML Sold Chip Tech to Chinese Military and Quantum Institutes

Dutch Chip Giant's Controversial China Exports Revealed

ASML, the Dutch semiconductor equipment manufacturer that holds a near-monopoly on advanced chip-making machines, sold vital components to Chinese military and quantum research institutes in 2024, according to an investigation by Dutch news program Nieuwsuur. The revelations have sparked serious questions about the effectiveness of export controls and whether sensitive Dutch technology is inadvertently supporting China's military modernization.

Military Research Institute Receives ASML Components

The investigation found that ASML supplied an essential chip machine component to the 24th Research Institute of CETC (China Electronics Technology Group Corporation), a state-owned defense company that the Chinese government designates as a military-industrial group. This institute operates China's only national laboratory for military computer chips and has collaborated on the country's space program, including the Tiangong space station.

'The sale is notable given the Dutch government's 2023 concerns about Dutch advanced technology potentially contributing to Chinese military development,' said one industry analyst familiar with the matter.

Quantum Technology Institute Also a Customer

In a separate but equally concerning transaction, ASML delivered a Deep UV lithography machine (DUV) to the Shenzhen International Quantum Academy in February 2024. This institute researches quantum sensing technology that the Dutch Military Intelligence and Security Service (MIVD) has explicitly warned could be used for military applications like detecting submarines.

Rem Korteweg, a geopolitics expert at the Clingendael Institute, expressed concern: 'It stands beyond doubt that this is sensitive technology. I'm really wondering: what were the considerations for executing this order? Knowing there are major concerns about what quantum technology means for national security.'

ASML's Defense and Government Response

ASML responded to the investigation by stating it strictly adheres to all applicable laws and regulations. In a statement to Nieuwsuur, the company wrote: 'The list you shared with us contains older, generic components and materials that are not subject to any licensing requirement in connection with export control restrictions or sanctions.' ASML emphasized that the machines sold to Chinese chip manufacturers involve 'old technology that cannot produce the most advanced chips' and that national security assessments are a government responsibility.

The Dutch Ministry of Foreign Affairs acknowledged that export to the Chinese defense industry is 'undesirable for multiple reasons' but noted that 'not all high-tech goods are necessarily sensitive and subject to licensing requirements under export control policy.' The ministry added that export policy focuses on controlling products requiring licenses, while exporters remain free to ship unregulated goods to China.

Experts Challenge Official Position

Four independent experts consulted by Nieuwsuur contradicted the official position, stating that the components in question are indeed crucial for chip machine operation. Judith Huismans, China expert at RAND Europe and former lead researcher at Datenna, suggested: 'It's difficult that you have no visibility at all on the export of those components as the Dutch government. One possibility is to introduce a general export restriction for chip machine components.'

Broader Context and Implications

ASML, with a market capitalization of approximately $345 billion as of September 2025, is Europe's largest technology company and the world's sole supplier of extreme ultraviolet lithography (EUV) machines needed for manufacturing the most advanced chips. The company's global dominance in semiconductor equipment makes its export decisions particularly significant.

The investigation also revealed that ASML sold products in 2024 to other Chinese chipmakers including GTA Semiconductor, Si En (Qingdao), and Semiconductor Manufacturing Beijing Corporation (SMBC) - companies that appear on U.S. sanctions lists for alleged connections to the Chinese military.

These revelations come amid growing tensions between Western nations and China over technology transfer, with the Dutch government recently taking control of Chinese-owned chipmaker Nexperia under the 'Availability of Goods Act' due to concerns about potential technology leakage.

The case highlights the complex balancing act facing European technology companies: maintaining profitable business relationships with China while navigating increasingly strict export controls and national security concerns. As geopolitical tensions continue to shape the semiconductor industry, the debate over what constitutes 'sensitive technology' and how to effectively regulate its export is likely to intensify.