(Bloomberg) — A China-based former worker of ASML Holding NV — a vital cog within the international semiconductor trade — stole information from a software program system that the company makes use of to retailer technical details about its equipment.
Most Learn from Bloomberg
The breach occurred in a repository that features particulars of the lithography programs vital to producing among the world’s most superior chips, stated folks with data of the state of affairs. It was the primary glimpse on the nature of the theft disclosed earlier Wednesday by ASML, which stated a former employee in China had stolen confidential info however didn’t elaborate on what sort of information have been taken.
The info got here from a so-called product life cycle administration program referred to as Teamcenter, stated the folks, who requested to not be recognized as a result of the knowledge isn’t public. The instrument is used internally, they stated.
Teamcenter serves as a shared storehouse of technical info that permits completely different teams of workers to collaborate and handle their product growth, in line with the web site of Siemens, which provides the software program. It permits for “widespread entry to a single repository of all product-related data, information and processes,” in line with the web site.
ASML declined to remark past the assertion it issued earlier on Wednesday, by which the corporate stated it didn’t imagine the theft was materials to its enterprise. Siemens didn’t instantly reply to a request for remark.
The breach concerned technological info however not {hardware} and was carried out by a male worker within the final couple of months, in line with one other individual conversant in the main points. Authorities within the US have been notified, stated the individual, who requested to not be recognized as a result of the investigation is ongoing. The US is “deeply involved” about allegations of financial espionage, Assistant Secretary of Commerce for Export Administration Thea Kendler stated in Tokyo on Thursday, declining to touch upon the specifics of the incident.
That is the second such breach that ASML has linked to China in lower than a yr and comes because the US is pressuring different nations together with the Netherlands to assist maintain China’s chipmaking talents from advancing. Tensions are already excessive after an alleged Chinese language spy balloon hovered over US airspace earlier than being shot down. Secretary of State Antony Blinken referred to as off a visit to Beijing — however was contemplating a gathering with China’s high diplomat in Germany this week, folks conversant in the matter stated.
Earlier on Wednesday, China’s International Ministry spokesman Wang Wenbin stated he wasn’t conscious of ASML’s accusation {that a} former Chinese language worker had misappropriated information.
The Dutch know-how firm, which makes machines wanted to supply high-end chips utilized in the whole lot from electrical autos to navy gear, has initiated an inside investigation and tightened safety controls after discovering the latest incident. It stated on Wednesday that export controls could have been violated, exposing the corporate to a possible regulatory backlash.
The corporate’s place as a vital a part of the availability chain for know-how that makes the quickest, strongest chips, has made it a goal. Final yr, ASML, which employs about 1,500 folks in China, accused a Beijing-based agency of probably stealing commerce secrets and techniques in a theft that dates again years.
In January, the Netherlands and Japan agreed to affix the US in proscribing exports of some superior chipmaking equipment to China. President Joe Biden’s administration has stated it’s important for the US and its allies to dam Beijing from buying applied sciences that might threaten international safety.
Dutch Commerce Minister Liesje Schreinemacher stated in a press release that it’s “very worrying that such a big and respected firm is affected by financial espionage.”
It’s unclear whether or not the ex-employee who stole the information had any connections to authorities in China or elsewhere. ASML, which is restricted from promoting its most-advanced machines to China, stated in its annual report that the theft isn’t materials to its enterprise.
The Veldhoven-based firm is among the few producers of the machines wanted to make mid- to high-range semiconductors. It’s the one producer of lithography programs wanted to shrink after which print patterns of transistors onto silicon wafers, that are then sliced into particular person chips. A single machine may be the scale of a bus and price roughly $170 million.
Chief Government Officer Peter Wennink has warned that China will in the end develop its personal home options if it could’t purchase from the West. China is ASML’s third-biggest market after Taiwan and South Korea. ASML and its friends promote their gear to chipmakers reminiscent of Intel Corp. and Taiwan Semiconductor Manufacturing Co., which provide corporations like Apple Inc. and Nvidia Corp.
ASML has beforehand accused Dongfang Jingyuan Electron Ltd. of acquiring ASML’s know-how and transferring it to China. That know-how was secured in a generally audacious trend: One engineer was accused of stealing all 2 million traces of supply code for vital ASML software program after which sharing a part of it with workers at Dongfang and a associated firm within the US, in line with transcripts of the proceedings.
–With help from Debby Wu.
(Updates with remark from US Commerce official)
Most Learn from Bloomberg Businessweek
©2023 Bloomberg L.P.