Dutch semiconductor firm ASML Holding recently said that an ex-employee in China has allegedly misappropriated chip data.
The leading chipmaker added that the incident might be related to a proprietary technology.
ASML Confirms Misappropriation of Chip Data
An employee walks past an ASML logo, a Dutch company which is currently the largest supplier in the world of semiconductor manufacturing machines via photolithography systems in Veldhoven on April 17, 2018. - They call it "the shrink" -- it's the challenge of how to pack more information onto the microchips which power everything from our phones to our computers, even our coffee machines. And pushing today's boundaries of science and technology is the Dutch company ASML, which since its foundation in 1984 has quietly become a world leader in the semiconductor business.
According to a report by Bloomberg on Wednesday, Feb. 15, ASML accused a former worker in China of obtaining sensitive information about the company.
The company said that the misappropriation might not be "material" to the business.
"We have experienced unauthorized misappropriation of data relating to proprietary technology by a (now) former employee in China," ASML stated in its yearly report.
Since a potential stealing of data is involved, the company considered this as a serious security issue. It's possible that the intruder might have already violated some rules including those about export control.
As of the moment, ASML has already relayed the information of the incident to the authorities. It is expected that there will be a follow-up announcement regarding the case.
US-China Chip War Might Spark the Problem
The United States and China remain to be squaring off when it comes to technological advancement. The two superpower countries are reportedly counting semiconductors on their battle.
The Government of Netherlands and ASML might have not anticipated that the issue between the two would affect them.
ASML is positioned in the chipmaking business mainly because it has something unique to offer to the customers.
It's the only semiconductor firm known for producing ultraviolet lithography machines. The machines which are worth $200 million are designed to print the finest and the most advanced microchips in the world.
Most commonly, the high-graded chips are used for AI applications and military purposes.
Related Article: ASML Forecasts Sales Recovery in 2023 and Revenue Stability in China
ASML Stops Shipping Chipmaking Machines to China
According to CNBC, ASML has stopped shipping the lithography machines to China since 2018.
Before it became a thing, the US urged the Dutch government to do so, in order for the Chinese chip makers to face the consequences of their actions.
Chip Data Misappropriation Linked to China Espionage
Since the US government continues to restrict shipments of chips to China, the misappropriation might have a connection to espionage.
Around 2021, ASML accused Dongfang Jingyuan Electron of infringing the intellectual rights of the company. The Dutch firm believed that the latter was stealing the IP rights.
It's no wonder that many companies might be planning to steal ASML's technology given how well=positioned it is in the industry. A company's spokesperson said that there are increasing security risk trends that might disrupt the overall standing of the organization.
Amid the chip wars, China is looking forward to improving its chipmaking production to catch up with the US and other countries. Even though the country is showing small progress in its plans, it's still left behind by other countries such as South Korea and Taiwan when it comes to chip business.
Read Also: ASML Warns That Chip Ban Against China Will Be Disruptive to the Global Supply Chain
