TSMC and ASML Holding NV have Kill Switch to Disable Machines in Case of China Invasion: Report

Chip giant TSMC has a kill switch in place to disable its advanced chipmaking machines remotely if China invades Taiwan, according to insiders. This move comes amidst rising tensions between China and Taiwan, with US officials expressing concerns about potential Chinese aggression towards the island nation.

ASML Holding NV, the sole manufacturer of the extreme ultraviolet (EUV) machines that TSMC heavily relies on, also has a similar kill switch in place. These machines are crucial for creating advanced microchips used in AI and military applications. The Netherlands, where ASML is based, has conducted simulations to assess the risks and has reassured Dutch officials that they can remotely disable the machines if necessary.

China claims Taiwan as its territory and has not ruled out military intervention. Despite US warnings of a potential invasion by 2027, Taiwanese officials have downplayed the threat. TSMC chairman Mark Liu has indicated that in the event of an invasion, their chipmaking machines would be rendered non-operational.

ASML’s EUV machines have made it Europe’s most valuable tech company, with a market cap of over $370 billion. Since 2016, ASML has shipped more than 200 EUV machines outside China, with TSMC being the largest client. These machines require frequent upkeep, and without ASML’s spare parts, they quickly become non-operational.

The presence of a kill switch highlights the importance of safeguarding critical technology in the face of geopolitical tensions. It also underscores the complex interplay between technology, national security, and international relations in the modern world.