SCMP quoted sources saying that TSMC and ASML have a way to remotely disable the world’s most modern chip foundry machines in case of a geopolitical crisis.
Currently, US officials are concerned that geopolitical tensions could escalate, negatively impacting the supply of leading advanced semiconductors. ASML has pledged to the government to be able to remotely “shut down” when a threat appears.
The remote disabling feature is equipped on ultra-ultraviolet machines, also known as EUV, manufactured by the Dutch company ASML, of which TSMC is one of the largest customers.
EUV exploits high-frequency light waves to print transistors, used on the smallest available microchips, thereby creating chips for artificial intelligence or military applications.
ASML’s EUV machines can be “disabled” remotely. Photo: SCMP
With the same size as an urban bus, EUV has a selling price of more than 217 million USD/unit and needs to be regularly maintained and updated. An anonymous source said the company has integrated a remote “off button” on devices manufactured exclusively by ASML.
The Dutch company has long been subject to government intervention controlling EUV exports to certain countries, such as China. At Washington’s request, starting this year the Netherlands will stop selling ASML’s next generation chip foundry. Even the Veldhoven headquarters company had to cancel some previously scheduled orders.
ASML has shipped more than 200 of these machines to customers outside of China since the first generation in 2016, with TSMC acquiring more machines than any other chipmaker. Currently about 90% of the world’s most advanced chips are being produced in Taiwan (China).
The EUV machine has helped turn ASML into Europe’s most valuable technology stock with a market capitalization of up to $370 billion, twice as high as Intel.
Meanwhile, on-site maintenance of EUVs poses a challenge because they are located in clean rooms, requiring engineers to wear special suits to avoid contamination.
ASML offers some customers periodic maintenance service contracts, such as allowing TSMC to access machine systems themselves. The foundry equipment company said it was unable to access proprietary customer data.
The company expects about 15% of its sales to China this year to be affected by the latest export controls.