ASML, the Dutch maker of advanced lithography machines, has become a central figure in the geopolitical struggle over artificial intelligence technology between the United States and China. Its machines — especially the most sophisticated extreme ultraviolet (EUV) lithography systems — are crucial for manufacturing the most powerful semiconductor chips that underpin modern AI models. Because of this, ASML sits at the crossroads of global tech supply chains: its products are essential to keep cutting‑edge chip factories running, but their distribution is tightly controlled by governments that see semiconductor leadership as a matter of economic and strategic security.
In recent years, the U.S. and its allies have imposed export restrictions on certain high‑end semiconductor equipment to limit China’s ability to produce AI chips domestically. These policies aim to slow the development of Chinese AI capabilities by restricting access to tools needed for the most advanced chip nodes. ASML, whose EUV machines are unmatched and cannot be manufactured in China without foreign components, has been a key target of these export controls. While ASML still sells older systems and some advanced machines to Chinese customers, the most powerful lithography tools are blocked from export, creating a technology gap that government strategists in the U.S. view as a competitive edge.
The situation places ASML in a delicate position: it must navigate regulatory pressure from Western governments while managing significant business interests in Asia, where demand for chips is vast. China remains a huge market for semiconductors, and many Chinese firms want ASML equipment to expand production. But the company must comply with export controls and geopolitical directives, which complicates long‑term planning and customer relationships. ASML executives have spoken openly about the challenge of balancing commercial ambitions with regulatory compliance and global stability concerns.
Beyond commercial considerations, ASML’s role highlights a broader trend in the global tech ecosystem: semiconductor supply chains have become strategic battlegrounds in the race for AI dominance. Nations are investing heavily in domestic chip production, research, and infrastructure to reduce reliance on foreign suppliers and secure their technological futures. In this environment, ASML — with its unique expertise, critical technology, and entrenched position at the top of the supply chain — exemplifies how economic competition and national security are increasingly intertwined in the age of artificial intelligence.
