ASML Faces Renewed Scrutiny Over Allegations of Misleading Conduct in China Operations

Eindhoven, Netherlands – Leading semiconductor equipment manufacturer ASML is facing fresh accusations of misleading behavior regarding its operations and compliance with export controls in China. Prominent China analyst Bill Bishop, known for his Sinocism newsletter, alleged that stakeholders were "misled by ASML," hinting at significant undisclosed issues. This comes as the Dutch company navigates a complex geopolitical landscape, balancing commercial interests with international regulatory pressures.

In a social media post dated November 27, 2025, Bishop stated, > "Because they were misled by ASML. Full story not yet out about just how badly ASML behaved." This tweet suggests a deeper narrative yet to emerge concerning ASML's conduct, potentially impacting its relationships with governments and partners. The accusation reignites concerns about the transparency of ASML's strategic decisions within the Chinese market.

ASML, a critical supplier of advanced lithography machines essential for chip manufacturing, has been at the center of the ongoing technology rivalry between the United States and China. The company previously issued a statement in November 2023, warning against "misinformation" about its China business and asserting full compliance with all applicable export regulations, including Dutch and U.S. controls. This earlier defense indicates a history of scrutiny over its China dealings.

The allegations also follow a significant incident in February 2023, when ASML confirmed that a former employee in China stole confidential data, which the company believed was shared with a China-linked entity. While ASML was the victim in that case, the event underscored the inherent risks and complexities of its extensive operations in China and raised questions about its internal security protocols and overall management of sensitive intellectual property.

Analysts and policymakers have frequently expressed concerns that ASML's substantial commercial ties with China could create conflicts of interest, potentially leading to a lack of full transparency with allied governments. These ongoing tensions highlight the delicate balance ASML must maintain between its global business objectives and the national security imperatives of Western nations. The full implications of Bishop's recent allegations remain to be seen as the "story" he references potentially unfolds.