Yahoo FinanceASML and TSMC Can Disable Chip Machines If China Invades Taiwan

(Bloomberg) -- ASML Holding NV and Taiwan Semiconductor Manufacturing Co. have ways to disable the world’s most sophisticated chipmaking machines in the event that China invades Taiwan, according to people familiar with the matter.
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Officials from the US government have privately expressed concerns to both their Dutch and Taiwanese counterparts about what happens if Chinese aggression escalates into an attack on the island responsible for producing the vast majority of the world’s advanced semiconductors, two of the people said, speaking on condition of anonymity.
ASML reassured officials about its ability to remotely disable the machines when the Dutch government met with the company on the threat, two others said. The Netherlands has run simulations on a possible invasion in order to better assess the risks, they added.
Spokespeople for ASML, TSMC and the Dutch trade ministry declined to comment. Spokespeople for the White House National Security Council, US Department of Defense and US Department of Commerce didn’t respond to emailed requests for comment.
The remote shut-off applies to Netherlands-based ASML’s line of extreme ultraviolet machines, known within the industry as EUVs, for which TSMC is its single biggest client. EUVs harness high-frequency light waves to print the smallest microchip transistors in existence — creating chips that have artificial-intelligence uses as well as more sensitive military applications.
About the size of a city bus, an EUV requires regular servicing and updates. As part of that, the company can remotely force a shut-off which would act as a kill switch, the people said, speaking on condition of anonymity. The Veldhoven-based company is the world’s only manufacturer of these machines, which sell for more than €200 million ($217 million) apiece.
ASML’s technology has long been subject to government interventions aimed at preventing it from falling into the wrong hands. The Netherlands prohibits the company from selling EUV machines to China, for instance, because of US fears they could lend its rival an edge in the global chip war.
It was at the behest of the US that the Dutch began this year to halt exports of ASML’s next-most sophisticated chipmaking machines. Even before that ban took effect, US officials had asked ASML to cancel some previously scheduled shipments to Chinese customers, Bloomberg News reported.