Dutch-based ASML says ex-employee in China stole technical data; Dutch, US authorities notified

Veldhoven-based ASML Holding, a manufacturer of chip-making equipment, revealed on Wednesday that a former employee in China stole data about its technology.

The Dutch company, which designs and manufactures lithography machines that are an essential component in chip manufacturing, initiated an internal investigation and tightened security controls after discovering a data breach, reports Bloomberg. 

A person familiar with the details states that a male employee committed a data breach involving technological data (not hardware). Dutch and US authorities have been notified regarding the same, adds the person. 

The details about the data breach surfaced after the Netherlands and Japan agreed to restrict exports of some advanced chipmaking machinery to China. 

The extent to which the stolen data could be utilised to create chip lithography technologies and the person’s relationship with the Chinese government is unknown.

In 2019, ASML accused Chinese spies of stealing trade secrets in its US unit, causing millions of euros worth of damage. According to the report, confidential information including source code, software and other details have been deciphered by senior Research and Development staff who allegedly has ties with the Chinese Ministry of Science and Technology

 ASML’s 2022 performance

Last month, ASML published a 2022 annual report highlighting net sales of €21.2B, up from €18.6B in 2021. However, the company’s net income for 2022 is €5.6B, down from €5.9B in 2021.

ASML president and CEO, Peter Wennink, says, “For ASML, 2022 was another strong year ending with total net sales for the year of €21.2B, gross margin of 50.5 per cent and a record backlog at the end of 2022 of €40.4B.”

He continues, “For 2023, ASML expects continued strong growth with a net sales increase of more than 25 per cent and a slight improvement in gross margin, relative to 2022.” 

“We expect first-quarter net sales between €6.1B and €6.5B with a gross margin between 49 per cent and 50 per cent,” adds Wennink.

ASML: What you need to know

ASML provides chipmakers with hardware, software, and mass services to produce the patterns of integrated circuits (microchips). 

Headquartered in Veldhoven, the Netherlands, ASML has offices across Europe, the US, and Asia. 

ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML.