Action could be taken by ASML, TSMC if Taiwan is invaded by China 😮

ASML and TSMC’s Response to Potential Threat From China

ASML and TSMC have developed a plan to protect the world’s most advanced chip-making machines in the event of a potential invasion from China. The strategy involves implementing a kill switch on ASML machines, specifically the extreme ultraviolet lithography machines that are crucial for the production of sophisticated chips utilized by TSMC.

Details of the Plan

In-depth reporting by teams in the Netherlands and the US confirmed the existence of a kill switch designed to remotely deactivate ASML machines.
The kill switch would address concerns raised by US officials about China potentially gaining access to these advanced machines.
TSMC heavily relies on ASML’s extreme ultraviolet lithography machines for its chip production.

Implications for US-China Relations

The presence of a kill switch highlights the US’s heightened focus on safeguarding technology from falling into Chinese hands.
The concern extends beyond smartphone chip production to potential military applications in China.
The urgency in addressing this issue reflects fears of a possible Chinese invasion of Taiwan by 2027.

Additionally, sales of ASML machines to China could face a significant impact due to the chip restrictions imposed by the US. While ASML can still sell legacy lithography machines to China, the sale of cutting-edge extreme ultraviolet lithography machines is prohibited, as ASML is the sole producer of these advanced machines.

International Response to the Threat

Not only the US but also the Netherlands and Japan have joined forces to restrict the sale of advanced chip-making technology to China.
Washington’s efforts to rally international support for these restrictions underscore the global concern over China’s potential access to cutting-edge technology.

Hot Take: ASML and TSMC’s Strategic Defense

ASML and TSMC’s proactive approach in implementing a kill switch on advanced chip-making machines demonstrates their commitment to ensuring the security of critical technology in the face of geopolitical threats. By taking decisive action to protect sensitive equipment, these companies are setting a precedent for safeguarding technological advancements in an increasingly competitive landscape.