The world's top chipmakers can flip a 'kill switch' should China invade Taiwan, Bloomberg reports
Source: Business Insider
May 23, 2024, 2:22 AM EDT
Two of the world's most important chip companies can flip a "kill switch" remotely on their most advanced chipmaking machines should China invade Taiwan, Bloomberg reported on Tuesday, citing people familiar with the matter.
The Netherlands's ASML — Europe's top tech company by market value — supplies advanced machines to chip-making companies. They include Taiwan's TSMC, which produces, by some estimates, 90% of the world's most advanced processor chips.
The news of a forced shutdown, or a "kill switch," on ASML's chip-making gear comes amid intensifying rivalry between Washington and Beijing and mounting concerns over a potential Chinese invasion of Taiwan, which Beijing claims as its own territory.
Taiwan is the world's epicenter for semiconductor chips, the ubiquitous parts that are used in products from data centers to smartphones. A war in the region would have major consequences for the global economy.
Read more: https://www.businessinsider.com/asml-tsmc-sem...wan-2024-5
The US, citing national security concerns, imposed restrictions on China under the Advanced Computing Chips Rule in November. The restrictions make it harder for the East Asian giant to import advanced AI chips from American manufacturers.
The US has also pressured the Netherlands to block some ASML exports to China to limit the country's ability to manufacture advanced chips. The Dutch company has also said it will stop servicing some equipment previously exported to China.
But US concerns over a Chinese invasion of Taiwan remain, and Washington has expressed them to Dutch and Taiwanese officials, Bloomberg reported. ASML assured Dutch officials about the option to push the "kill switch" when they met with the company, per the media outlet.
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The option applies to ASML's line of advanced extreme ultraviolet machines, according to Bloomberg.
Source: Business Insider
May 23, 2024, 2:22 AM EDT
Two of the world's most important chip companies can flip a "kill switch" remotely on their most advanced chipmaking machines should China invade Taiwan, Bloomberg reported on Tuesday, citing people familiar with the matter.
The Netherlands's ASML — Europe's top tech company by market value — supplies advanced machines to chip-making companies. They include Taiwan's TSMC, which produces, by some estimates, 90% of the world's most advanced processor chips.
The news of a forced shutdown, or a "kill switch," on ASML's chip-making gear comes amid intensifying rivalry between Washington and Beijing and mounting concerns over a potential Chinese invasion of Taiwan, which Beijing claims as its own territory.
Taiwan is the world's epicenter for semiconductor chips, the ubiquitous parts that are used in products from data centers to smartphones. A war in the region would have major consequences for the global economy.
Read more: https://www.businessinsider.com/asml-tsmc-sem...wan-2024-5
The US, citing national security concerns, imposed restrictions on China under the Advanced Computing Chips Rule in November. The restrictions make it harder for the East Asian giant to import advanced AI chips from American manufacturers.
The US has also pressured the Netherlands to block some ASML exports to China to limit the country's ability to manufacture advanced chips. The Dutch company has also said it will stop servicing some equipment previously exported to China.
But US concerns over a Chinese invasion of Taiwan remain, and Washington has expressed them to Dutch and Taiwanese officials, Bloomberg reported. ASML assured Dutch officials about the option to push the "kill switch" when they met with the company, per the media outlet.
Related stories
Microsoft tells AI, cloud staff in China to consider moving: report
Taiwan's economy is booming thanks to the AI craze
The option applies to ASML's line of advanced extreme ultraviolet machines, according to Bloomberg.
