(Bloomberg) — A former employee of China-based ASML Holding NV, a key cog in the global semiconductor industry, stole data from a software system the corporation uses to store technical information about its machinery.
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The breach occurred in a warehouse that includes details of lithography systems critical to producing some of the world’s most advanced chips, people with knowledge of the situation said. It was the first glimpse into the nature of the theft revealed on Wednesday by the ASML, which said a former worker in China had stolen sensitive information, but did not elaborate on what kind of data was taken.
The data came from a so-called product lifecycle management program known as Teamcenter, said the people, who asked not to be identified because the information is not public. The tool is used internally, they said.
Teamcenter serves as a shared repository for technical information that allows different groups of employees to collaborate and manage the development of their products, according to the website for Siemens, which supplies the software. It enables “common access to a single repository of all product-related knowledge, data, and processes,” according to the website.
ASML declined to comment beyond the statement it issued Wednesday, in which the company said it did not believe the theft was material to its business. Siemens did not immediately respond to a request for comment.
The breach involved technological information but not hardware and was carried out by a male employee in recent months, according to another person familiar with the details. US authorities have been notified, said the person, who asked not to be named because the investigation is ongoing. The United States is “deeply concerned” by allegations of economic espionage, Assistant Secretary of Commerce for Export Administration Thea Kendler said Thursday in Tokyo, declining to comment on details of the incident.
This is the second such breach that ASML has linked to China in less than a year and comes as the US is lobbying other nations, including the Netherlands, to help prevent chipmaking capabilities from advancing. from China. Tensions are already high after an alleged Chinese spy balloon flew over US airspace before being shot down. Secretary of State Antony Blinken has canceled a trip to Beijing but was considering a meeting with China’s top diplomat in Germany this week, people familiar with the matter said.
Earlier on Wednesday, Chinese Foreign Ministry spokesman Wang Wenbin said he was unaware of ASML’s allegation that a former Chinese employee had misappropriated data.
The Dutch tech company, which makes the machines needed to produce high-end chips used in everything from electric vehicles to military equipment, launched an internal investigation and tightened security checks after discovering the latest incident. It said Wednesday that export controls may have been breached, exposing the company to potential regulatory backlash.
The company’s position as a crucial part of the technology supply chain that makes the fastest and most powerful chips has made it a target. Last year, ASML, which employs about 1,500 people in China, accused a Beijing-based company of potentially stealing trade secrets in a theft dating back years.
In January, the Netherlands and Japan agreed to join the US in restricting exports of advanced chip-making machinery to China. President Joe Biden’s administration has said it is essential that the US and its allies prevent Beijing from acquiring technologies that could threaten global security.
Dutch Trade Minister Liesje Schreinemacher said in a statement that it is “very worrying that such a large and reputable company is affected by economic espionage.”
It is not clear if the former employee who stole the data had any connection to authorities in China or elsewhere. ASML, which cannot sell its most advanced machines to China, said in its annual report that theft is not important to its business.
The Veldhoven-based company is one of the few producers of the machines needed to manufacture mid-range and high-end semiconductors. It is the only manufacturer of the lithography systems required to shrink and then print transistor patterns onto silicon wafers, which are then cut into individual chips. A single machine can be the size of a bus and cost approximately $170 million.
Chief Executive Officer Peter Wennink has warned that China will ultimately develop its own domestic alternatives if it cannot buy from the West. China is the third largest market for ASML after Taiwan and South Korea. ASML and its peers sell their equipment to chipmakers like Intel Corp. and Taiwan Semiconductor Manufacturing Co., which supply companies like Apple Inc. and Nvidia Corp.
ASML previously accused Dongfang Jingyuan Electron Ltd. of obtaining ASML’s technology and transferring it to China. That technology was secured in a sometimes audacious way: An engineer was accused of stealing the 2 million lines of source code for critical ASML software and then sharing some of it with Dongfang employees and a related company in the US. ., according to the transcripts of the minutes.
–With the help of Debby Wu.
(Updates with comments from the US Commerce official)
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