Former ASML employee accused of theft may be Huawei's key for developing advanced chips

A former employee of ASML Holding NV, who was accused of stealing data from the leading chipmaking machine manufacturer, has reportedly found employment with Huawei Technologies Co, as reported by Dutch newspaper NRC. ASML had disclosed in February that one of its former employees in China had stolen technology-related data, without providing specific details about the breach. The stolen data pertained to a software system used by the company to store technical information about its machinery. This development unfolds against the backdrop of the United States’ ongoing efforts to restrict China’s access to semiconductor technology that could potentially provide it with a military advantage. It is the latest development in an escalating trade dispute that has cast Huawei as a focal point due to concerns about its affiliations with the Chinese government. Following the individual’s departure from ASML, it is reported that they worked at Huawei for a considerable period, according to unnamed sources cited by NRC. The person in question was based in China and was allegedly linked to a Chinese state-sponsored entity, which was believed to be involved in the theft of data on behalf of this entity. The group in question has previously been associated with intellectual property theft, although its specific name was not disclosed by the sources. ASML holds a critical position in the global chip supply chain. The company has a virtual monopoly on advanced extreme ultraviolet (EUV) lithography systems, which are indispensable for producing cutting-edge semiconductor chips. Additionally, it supplies deep ultraviolet lithography machines used in the manufacturing of more mature semiconductor products. Huawei quietly unveiled a new smartphone in August that featured a powerful 7nm processor. Analysis of the device’s internals revealed that the chip was produced by a Chinese company, underscoring China’s manufacturing capabilities, which have surpassed the constraints imposed by the United States. This achievement has raised questions about Washington’s ability to impede Beijing’s technological aspirations, leading to increased political pressure for the Biden administration to impose additional sanctions on Huawei and its chipmaking partner, Semiconductor Manufacturing International Corp. This latter entity happens to be one of ASML’s significant customers in China.