ASML’s Big Bet on Communist China is Bitten Back by Technology Theft

ASML, a leading Dutch manufacturer of photolithography machines, has shifted its business focus to the Chinese Communist Party (CCP) in the last decade. Peter Wennink, the company’s CEO, has remained inexplicably optimistic about the CCP and opposed counterbalancing the CCP to maintain its interests, even as the U.S. and its allies have lobbied hard to block the CCP’s access to semiconductor technology.

However, with ASML’s recent revelation that a Chinese employee stole patent technology, there are questions about the risks associated with betting on the CCP as opposed to the potential benefits. Last Wednesday, ASML released its latest annual report, which showed that the company is launching an internal investigation into a former Chinese employee who is suspected of helping the CCP steal classified documents about proprietary technology in advance of the semiconductor export restrictions. ASML said the security incident is so serious that it could result in an indirect violation of the company’s regulatory measures against Communist China.

“It is very worrying that such a large and reputable company is affected by economic espionage,” said Dutch Trade Minister Liesje Schreinemacher. “This shows once again how important it is that we protect the high-quality technology that we have in the Netherlands very well.”