US Government Conveys Concerns to Netherlands and Taiwan in Case of Emergency
ASML "Remote Operation Halted"...Simulation Completed
ASML, the world's largest semiconductor equipment manufacturer based in the Netherlands, and TSMC, the world's largest foundry company based in Taiwan, have announced that they can remotely shut down semiconductor production facilities in the event of a Chinese invasion of Taiwan. This measure is intended to prevent cutting-edge semiconductor technology from falling into Chinese hands in such an emergency.
According to Bloomberg News on the 21st (local time), the U.S. government recently conveyed concerns about China seizing semiconductor facilities in the event of an invasion of Taiwan to both the Netherlands and Taiwan.
Taiwan is estimated to produce 80-90% of the world's advanced semiconductors. Consequently, there are concerns that if China attacks Taiwan, advanced semiconductor production technology could be directly transferred to China.
ASML reportedly informed the Dutch government that it can remotely halt the operation of semiconductor equipment in an emergency. Sources said the Dutch side even conducted simulation exercises on expected invasion scenarios to assess the actual risks.
The remote shutdown device, known as a "kill switch," is applied to ASML's extreme ultraviolet (EUV) lithography equipment line. Utilizing EUV lithography equipment is essential for semiconductor ultra-fine processes required to manufacture AI chips or sensitive military chips. Currently, TSMC holds the largest number of this equipment worldwide. The EUV lithography equipment, produced exclusively by ASML globally, costs over $217 million per unit.
Bloomberg News, citing sources, reported, "The bus-sized EUV lithography equipment requires regular servicing and updates, during which the company can enforce remote shutdown as part of the process."
ASML has been subject to U.S. government export controls on semiconductor equipment to China and has not been able to sell advanced semiconductor equipment such as EUV lithography machines to China. China is ASML's largest market, and the company expects that up to 15% of its sales in China this year will be affected by export control measures.
TSMC also previously stated that semiconductor production facilities would not operate in the event of a Chinese invasion of Taiwan.
Mark Liu, Chairman of TSMC, said in an interview with CNN in September last year, "No one can forcibly control TSMC," adding, "If a military invasion occurs, TSMC factories will cease operations." This means they will immediately halt operations in an emergency to prevent TSMC's semiconductor production technology from falling into Chinese hands.
Concerns about a possible Chinese invasion of Taiwan and semiconductor technology leakage have intensified as tensions between China and Taiwan have escalated around the inauguration of Lai Ching-te, a pro-Taiwan figure. Earlier, three days before Lai's inauguration on the 17th, the Chinese Ministry of National Defense revealed the test operation results of the aircraft carrier Fujian, signaling a military threat to Taiwan. Western countries, including the U.S., expect Chinese President Xi Jinping to complete preparations for an invasion of Taiwan by the end of his third term in 2027. Lai faces the challenge of countering China's increasing military pressure on Taiwan while protecting the semiconductor industry, including TSMC.
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