ASML reports that a Chinese (former) employee stole internal information about the company’s lithography technology. The incident adds fuel to the geopolitical fire.

Update 03/03 09h23: An official investigation has been launched to determine whether the employee has direct or indirect links to Chinese intelligence agencies.

Original article 15/02 10h45: ASML announced its annual financial report on Wednesday. However, it wasn’t the numbers that caught media attention. In its annual report, the Dutch manufacturer of chip machines reported an “unauthorized misappropriation of data in connection with proprietary technology” by a (now fired) Chinese employee.

ASML itself claims that the stolen information poses no threat to the company, although it has notified the Dutch and US governments of the incident. It is also not the first time that a Chinese party has tried to get its hands on ASML’s technology. Last year, the company reported that a Chinese chipmaker had violated intellectual property rights.

industrial espionage

The incident is politically very sensitive. Due to its unique position in the chip industry as the largest manufacturer of UV machines, the Dutch company is fully embroiled in the chip war between America and China. At the end of January, under pressure from the USA, the Dutch government agreed to further restrict the export of chip technology, which means that ASML can no longer sell its machines in China.

Dutch Foreign Minister Liesje Schreinemacher is therefore concerned about the incident. She speaks of “industrial espionage” in the company. “ASML is making great efforts to secure its valuable technology. That is in all of our interests. It is therefore very worrying that such a large and well-known company has been affected by industrial espionage,” says the minister.

CEO Peter Wennink is not very happy with these export restrictions. In his opinion, in addition to the economic interests of his company, the formation of geopolitical blocs is also inhibiting technological development. “When countries or trading blocs retreat to their own territory, innovation becomes less effective and more expensive,” he told the Financial Times.