ASML, a major manufacturer of computer chip equipment, claims a former employee in China took sensitive information about its technology.

The Dutch company claims it has since disclosed the breach to Dutch and American authorities.

However, the company added, “we do not consider the misappropriation to be material to our business.”

ASML is a key player in the global microchip supply network. It manufactures machines that create the most advanced chips in the world.

The United States and China are embroiled in a bitter dispute over chips, or semiconductors, which are used to fuel everything from mobile phones to military hardware.

ASML disclosed in its most recent annual report that an ex-employee in China had improperly accessed data about the company’s secret technology.

“As a consequence of the security incident, there may have been violations of export control regulations. We are taking additional corrective measures in response to this occurrence “it added.

ASML did not identify the former employee or provide specifics regarding potential violations of export control regulations.

This is not the first time ASML has connected a violation of intellectual property (IP) to China.

In its 2021 annual report, the company stated that it was aware of reports that DongFang JingYuan Electron, a Chinese manufacturer of semiconductor equipment and software, “was actively marketing products in China that could infringe on ASML’s intellectual property rights.”

DongFang JingYuan Electron refuted the charges.

The Beijing-based company stated at the time that the reports were “inconsistent with the truth.”

“We reserve the right to take additional legal action against false information,” the statement continued.

Major firms in the semiconductor industry have been subject to export restrictions to China.

Washington stated in October that it would require licenses from companies exporting chips to China using US tools or software, regardless of where the chips were manufactured.

The United States has encouraged the Netherlands and Japan to implement comparable restrictions.

The Dutch government has prohibited ASML from exporting its most sophisticated lithography machines to China since 2019.

As part of the microchip manufacturing process, lithography devices employ lasers to imprint minute patterns on silicon.