ASML Holding NV and Taiwan Semiconductor Manufacturing Co. have developed a mechanism to remotely disable their advanced chip-making machines in the event of a potential Chinese invasion of Taiwan, sources familiar with the matter revealed. The US government has raised concerns about the impact of a conflict on the global semiconductor industry.

US officials have reportedly engaged in private discussions with Dutch and Taiwanese authorities regarding the potential scenario of Chinese aggression escalating into an attack on Taiwan, a key hub for advanced semiconductor production. The ability to remotely deactivate the chip-making machines was a focal point of these conversations, according to individuals who spoke on the condition of anonymity.

During discussions with ASML, the Dutch government conducted simulations to evaluate the risks associated with a possible invasion of Taiwan. ASML, known for its extreme ultraviolet (EUV) machines, assured officials of its capability to remotely shut down the equipment if necessary. Taiwan Semiconductor Manufacturing Co. (TSMC), a major client of ASML, is heavily reliant on these EUV machines for chip production.

Both ASML and TSMC, as well as the Dutch trade ministry, declined to provide comments on the matter. Requests for comments from the White House National Security Council, US Department of Defense, and US Department of Commerce went unanswered.

ASML’s EUV machines utilize high-frequency light waves to manufacture the smallest microchip transistors, enabling the production of chips with applications in artificial intelligence and sensitive military technologies. The potential disruption of chip-making operations underscores the critical role Taiwan plays in global semiconductor supply chains.

China’s claims over Taiwan have raised geopolitical tensions, with President Xi Jinping advocating for peaceful unification while not ruling out military intervention. US officials have expressed concerns over China’s intentions, with warnings that China could be capable of invading Taiwan by 2027. In contrast, Taiwanese officials have downplayed the immediate threat, and Beijing has dismissed US assertions of a specific timeline for military action.

The People’s Liberation Army has not shown signs of significant troop build-up near Taiwan’s coast, with Xi Jinping prioritizing economic stability to achieve long-term development objectives.

ASML’s EUV machines, crucial for advanced chip production, require regular maintenance and updates. The ability to remotely deactivate these machines serves as a safeguard against potential disruptions in chip manufacturing processes, ensuring operational security in the face of geopolitical uncertainties.