- Bloomberg reports that chipmakers ASML and TSMC can remotely disable advanced chip-making machines.
- The move is in response to growing concerns about Chinese aggression in Taiwan, a major semiconductor producer.
- A conflict between China and Taiwan could have serious implications for the global economy.
Two of the world’s largest semiconductor companies could remotely flip a “kill switch” on their most advanced chip-making equipment if China invades Taiwan, Bloomberg reported on Tuesday, citing sources.
Netherlands-based ASML is Europe’s largest technology company by market capitalization, supplying semiconductor manufacturing companies with advanced machinery. This includes Taiwan’s TSMC, and according to some estimates, 90% of the world’s most advanced processor chip.
News of the forced shutdown, or “kill switch”, of ASML’s chip manufacturing equipment comes as tensions between the US and China escalate and concerns grow over a possible Chinese invasion of Taiwan, which China claims as its own territory. It was announced in
Taiwan is a global center for semiconductor chips used in everything from data centers to smartphones. A war in this region would have a major impact on the world economy.
Citing national security concerns, the United States imposed restrictions on China under the Advanced Computing Chip Rules in November 2023. The restrictions make it difficult for the East Asian giant to import advanced AI chips from U.S. manufacturers.
The United States is also pressuring the Netherlands to block some ASML exports to China in an effort to limit its manufacturing capacity for advanced semiconductors. The Dutch company has also said it will stop servicing some equipment it previously exported to China.
But the US is concerned about a Chinese invasion of Taiwan, and the US government has conveyed those concerns to Dutch and Taiwanese officials, Bloomberg reported. ASML assured Dutch officials during a meeting that it had the option to hit the “kill switch,” the outlet reported.
The option applies to ASML’s line of advanced extreme ultraviolet machines, Bloomberg reported.
Taiwan’s TSMC is the largest purchaser of these equipment, valued at 200 million euros ($217 million). The company prints tiny microchip transistors used to make chips for artificial intelligence and military applications.
Rising Concerns Over Situation in the Taiwan Strait
There are concerns that China has stepped up military drills around Taiwan since the island installed its new president, William Lai, on Monday, who has been labelled a separatist by Beijing.
Chinese People’s Liberation Army Spokesman Li Wei said the Chinese government had stepped up military activities around Taiwan ahead of Lei Michel’s inauguration ceremony, and on Thursday said, He announced that he would hold military exercises as a “severe punishment for the attack.”
Chip-making supply chains are shifting amid rising geopolitical tensions.
TSMC is diversifying its production We have a second facility in Arizona and a new factory in the future. Japan and Germany. However, it will take time for the new facility to become operational.
The United States also CHIPS method, It provides billions of dollars in subsidies for domestic manufacturing, research and workforce development.
But Nvidia CEO Jensen Huang told Bloomberg TV on Tuesday that the global tech industry will likely remain dependent on Taiwanese manufacturing “for some time.” He said it would be “very difficult” for Nvidia to serve customers without Taiwan.
ASML and the Dutch government declined to comment to Business Insider.
TSMC did not immediately respond to Business Insider’s request for comment. The company declined to comment to Bloomberg.
