ASML Warns Against China Affiliate

ASML Holding NV ASML warned against an affiliate of a Chinese rival company, Bloomberg reports.
ASML, which previously accused the affiliate of stealing its trade secrets, disclosed that it had begun marketing products that could infringe on its intellectual property rights.
ASML has requested specific customers not to aid the associated firm Dongfang Jingyuan Electron Ltd that has won Beijing’s immunity against regulatory action.
ASML has a monopoly on advanced extreme ultraviolet lithography systems indispensable to producing the most cutting-edge chips globally. It also supplies deep ultraviolet lithography machines needed to make more mature semiconductors.
China is reliant on ASML’s technology to build a domestic chip ecosystem. But the U.S. government reportedly pressured Dutch officials not to allow ASML to sell its EUV systems to China in 2019.
Price Action: ASML shares traded higher by 2.22% at $668 in the premarket session on the last check Wednesday.