Dutch chip-equipment giant ASML Holding NV is grappling with its biggest challenge yet under the Trump administration: In a series of recent meetings, Commerce Secretary Howard Lutnick outlined concerns to ASML’s senior leaders that one of its top machines may have made its way to China in violation of U.S.-led export restrictions.
During the meetings, Lutnick expressed concerns to ASML executives about the company’s extreme ultraviolet lithography (EUV) machines, according to people familiar with the conversations. EUV systems are used by companies such as Taiwan Semiconductor Manufacturing Co. and Nvidia Corp. And Apple Inc. ASML has never been allowed to ship them to China due to sanctions imposed during the first Trump administration.
ASML has rejected Lutnick’s suggestion that any of these devices — which are the size of a school bus, are manufactured in limited quantities, and require constant maintenance by ASML staff — are in China, said the people, who spoke on condition of anonymity to describe private conversations. Asked about the meetings, a company spokesperson said ASML talks to all governments and has never sent EUV machines to China.
It’s not clear what exactly the Trump administration wants from ASML, which it is now trying to prove negative about, nor what kind of information from the equipment manufacturer might put an end to the China EUV issue. The Commerce Department did not answer several questions on the matter, including whether the agency had any evidence of EUV machines in China.
ASML shares fell as much as 2.7% in Amsterdam on Friday. They are up about 78% this year.
Several senior administration officials, speaking on condition of anonymity to describe a sensitive matter, said they have evidence indicating that ASML is not acting in good faith — such as exports of gear specifically related to EUV devices to China, which ASML has denied to Bloomberg. These US officials, who did not comment on Lutnick’s meetings with ASML, declined Bloomberg’s multiple requests for proof of the shipments, citing the sensitivity of the information and sources. He also declined to say whether he had seen evidence of an actual EUV system in the Asian country.
Continued concerns from senior levels of the Trump administration – including a Cabinet official – increase pressure on Europe’s most valuable company, which has previously faced allegations by US officials that its business activities undermine US national security and technology policies. If ASML is unable to address Washington’s concerns, the situation could further strain already strained relations between the US and the EU.
“ASML regularly engages in transparent and open dialogue with government leaders globally,” a company spokesperson said. “We recognize the national security considerations behind export control regulations in the US and the Netherlands, and we are fully committed to complying with all applicable regulations.” He said ASML has previously “refuted several baseless rumors regarding non-compliance with China-related export controls, which were false and damaging to our reputation.”
A representative of the Dutch Foreign Ministry said that the Netherlands takes seriously the responsibility that comes with “its unique role in the semiconductor industry.”
According to Foreign Trade Minister Sjoerd Sjoerdsma, any investigation would be the responsibility of the Dutch Customs Service.
“In general terms, customs officials can investigate here, and if criminal offenses are found, the public prosecutor’s office will intervene,” Soedersma told reporters in The Hague on Friday, adding that the government has taken no action on the US allegations.
“The system is incredibly robust, and the export regulations currently are extremely strict, probably the strictest in the entire world.”
It is unclear what specifically prompted Lutnick’s EUV questions, which they posed at a meeting that covered a number of other topics, including ASML’s commitments to invest in the US. Both Lutnick and ASML CEO Christophe Fouquet described the overall conversation positively in their LinkedIn posts, without mentioning the EUV issue.
Privately, however, ASML has moved into crisis mode, some people with knowledge of the talks said. After meeting with Lutnick in April, the Dutch firm created a document titled “No sign of any ASML EUV systems in China” and began circulating it in Washington.
There are 314 EUV machines operating worldwide, 26 of which have been shut down, and none in China, according to the document reviewed by Bloomberg. The presentation said ASML can automatically detect “any interruption, abnormal behavior or loss of connectivity” across its EUV portfolio, and customers “cannot remove, transport and relocate EUV systems without ASML’s involvement due to special handling procedures.”
Senior administration officials said they have evidence that ASML shipped to China specialized equipment used to transport EUV machines, as well as other components that can be used in EUV systems. In response to multiple requests, he said, the evidence of those exports is too sensitive to disclose.
A company spokesperson denied the allegations, saying, “ASML has never shipped an EUV machine to China, nor have we shipped any component, module or equipment to China specifically designed to be used in an EUV machine.”
China’s lack of access to EUV equipment is perhaps the biggest hurdle facing AI chip champion Huawei Technologies Co., which is Nvidia’s top rival in the Asian country. Huawei’s semiconductor chief recently spoke in a rare English-language public appearance about the company’s innovations in making chips without ASML’s EUV machines.
If an EUV system reaches China, it would be the biggest known violation of US-led sanctions designed to limit Beijing’s access to AI that could benefit its military. Bloomberg asked senior Trump administration officials why, if they had evidence to suggest that this was the case, why the US government had not taken tougher policies or punitive action on that basis. He declined to comment.
ASML has faced increasing limitations on its business in China for several years, as the US has pressured the Netherlands and Japan to stem the flow of chip production equipment to the geopolitical rival. These three countries are home to leading manufacturers of these equipment, and Chinese rivals are making progress but have not caught up – particularly in lithography, where ASML is the world leader.
The Netherlands has already banned ASML from selling EUV machines and some types of the next most advanced immersion deep ultraviolet, or DUV, lithography equipment to China. But there was deep disappointment under the Biden administration after ASML expedited shipments of soon-to-be-banned gear before some DUV controls were officially implemented.
Senior Trump administration officials who spoke about alleged shipments of EUV components to China also brought up these first, legal DUV shipments — and said they have overall concerns that ASML is prioritizing short-term profits over national security.
A company spokesperson said, “Any claims that ASML will or has knowingly and willfully broken any agreements with the Dutch, US or any other government are not only factually incorrect but grossly misleading.” “ASML has continuously adjusted its business operations in accordance with any developments in export controls to comply with any new regulations.”
The Hague and Tokyo have generally lagged behind Washington in their timing of controls, and have resisted implementing some measures – such as banning their engineers from maintaining and repairing certain restricted gear already in China, which American individuals and companies cannot do. U.S. chip equipment makers Lam Research Corp, KLA Corp and Applied Materials Inc have said the discrepancy puts them at a competitive disadvantage.
Washington’s so-called Entity List also differentiates restrictions on U.S. and foreign companies for sales to specific Chinese customers, which imposes stricter controls on individual companies than on companies operating throughout China.
For example, the US has effectively cut off all technology flows to Huawei, and has used extraterritorial authorities to extend those measures to companies including ASML. But US rules still allow some types of foreign trade with other Chinese companies on the entity list – such as Huawei’s partner SureSure Technology Co, which was added to the list in 2024.
Senior Trump officials, who expressed concerns about ASML’s overall business activities, said that ASML is providing technical assistance to SureSure to help build the company’s resilience to US regulations. He declined to provide further details. SwaySure did not respond to requests for comment.
Certainly, Washington has the tools to force ASML to stop working with SwaySure altogether — and President Donald Trump’s team hasn’t used them. The US administration has generally struggled to formulate a coherent strategy around semiconductor manufacturing equipment export controls.
Trump officials began their tenure by threatening to completely cut off ASML from China, according to people familiar with the talks, who requested anonymity because the discussions are private. He then proposed much narrower measures in talks with the Netherlands and Japan, focusing mainly on the question of gear maintenance – something the Biden administration also tried and failed to fully tackle. The talks under Trump’s leadership have not yielded any concrete results yet.
What Bloomberg Intelligence Says
US concerns about Chinese chipmakers using ASML’s advanced equipment may have little impact on ASML’s sales. Bloomberg News reports that in recent meetings, Commerce Secretary Howard Lutnick raised concerns with ASML leaders that one of its top machines may have entered China in violation of U.S.-led sanctions.
But ASML says it has never shipped extreme ultraviolet lithography systems to China and has complied with strict restrictions on deep ultraviolet equipment. Furthermore, using ASML machines to make advanced chips would likely require sophisticated equipment from other foreign firms, which also face restrictions. China is becoming able to make more advanced chips with older equipment, so US concerns may reflect Chinese engineering advances rather than any lapses in ASML compliance with export controls.
That diplomatic standoff prompted Congress to step in earlier this year with a bipartisan bill that broadly seeks to toughen sanctions on companies including ASML and Japan’s Tokyo Electron Ltd., so they are subject to the same restrictions as U.S. companies in China. It also calls for ASML to impose an effective ban on the shipment of all types of immersion DUV devices, which would dramatically limit the Dutch company’s access to the market, from which it is expected to derive approximately 20% of its 2026 revenues.
The Trump administration has not taken any formal stance on the legislation, which was approved by a key congressional committee in April with some amendments. US Ambassador to the Netherlands Joe Popolo recently suggested that a favorable trade agreement between the US and the EU would “take some of the pressure off” on the bill, which has been opposed by many foreign governments, including Hague.
