Recent decisions to deny export licenses to ASML, Europe's largest tech firm based in the Netherlands, are rooted in concerns over potential military applications of its computer chip equipment, according to Dutch Trade Minister Geoffrey van Leeuwen.
In a note on February 5, Van Leeuwen highlighted China's focus on foreign expertise, particularly Dutch lithography expertise, for military-technical development. ASML's lithography systems are essential for chip makers.
The minister stressed that ASML tools contribute to producing advanced semiconductors, potentially used in "high-value weapons systems and weapons of mass destruction." The Dutch government prioritizes evaluating export licenses based on the risk of undesirable end use, according to a Reuters report.
Keeping Sophisticated Equipment Off From China
Under pressure from the United States, the Dutch government introduced a licensing requirement for ASML's mid-range DUV machines last year, with the company's most advanced equipment never sold to China. Van Leeuwen did not directly address questions about the granting and retraction of a license for ASML to export tools to undisclosed Chinese customers.
However, the Dutch official mentioned that several licenses for exporting advanced semiconductor equipment to China have been granted since the licensing requirement introduction in September, with around 20 expected requests this year.
ASML acknowledged the Dutch government's license revocation in January. Although the subsequent cancellations had no effect on ASML's profitability for the fourth quarter, the Deep Ultraviolet (DUV) instruments were a significant component of client programs and cost around $60 million each.
ASML dominates lithography equipment manufacturing, according to a report from CNBC. The machines the firm produces are the most sophisticated lithography equipment needed to make cutting-edge processor chips.
China Facing Cybersecurity Threat as It Bolsters Military Tech
Concerns over ASML's technology come amid China and Russia finding common ground on AI applications in military technology during officials' meetings in Beijing. TechTimes previously reported that the two nations agreed to collaborate on AI use, with detailed discussions on military objectives. While the Russian foreign ministry referred to talks on "doctrinal guidelines and initiatives," specifics were not provided.
Coordination was emphasized within the UN-backed forum, the GGE on LAWS. China clarified that discussions covered not only military AI use but also outer space security, biosecurity, and artificial intelligence. This coordination followed a meeting between Ma Zhaoxu of China and Foreign Minister Sergey Lavrov in Moscow on January 30.
Officials expressed commitment to enhancing China-Russia collaboration on foreign policy issues for global peace and stability, emphasizing closer coordination within the UN and the UN Security Council.
In a related development, China is facing an increased cybersecurity threat from India, challenging assumptions about major threats originating from the United States. A hacker group named "Bitter," suspected of having Indian origins and potential state backing, targets the government, military, and nuclear sectors in China and Pakistan.
Despite not being highly sophisticated, their methods, including spear phishing and watering hole attacks, have proven effective since at least November 2013. Official responses from both China and India are notably absent, and a Beijing-based cybersecurity expert highlights that cyber threats against China often come from South Asian countries, particularly India.
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