Semicon Briefing

US authorities claim that ASML's most advanced EUV lithography system reached China in violation of export controls – ASML denies this. The incident is a potential turning point for the enforceability of Western chip export regimes and could lead to tightened sanctions and supply restrictions.

ASML and Tata Electronics announced a strategic partnership on May 16, 2026 to develop India's semiconductor ecosystem – a deliberate move away from Taiwan and South Korea. For ASML, this opens up a state-subsidized growth market as part of the India Semiconductor Mission.

President Trump has publicly announced a comprehensive US chip reindustrialization initiative encompassing Intel, Nvidia, Apple, and Elon Musk's TerraFab – including a reported $60 billion government stake. This goes beyond the known Apple-Intel deal and positions the US as an active industrial policy player with direct participation.

China controls 70% of global indium production and is now tightening export restrictions on indium phosphide – a key material for high-speed data transfer in AI data centers. Following tungsten, this is China's second critical materials weapon within weeks and significantly increases pressure on Western chip and AI infrastructure supply chains.

NVIDIA is investing $2 billion in Coherent Corp. and has jointly begun construction of an indium phosphide fab in Texas, supplemented by $50 million in CHIPS Act funding. The project aims to quadruple optical data transmission capacity for AI data centers – a strategically new move as NVIDIA invests directly in proprietary materials manufacturing capacity for the first time.

The US Bureau of Industry and Security (BIS) closed a loophole on May 31, 2026 that had allowed Chinese firms to procure AI chips through foreign subsidiaries. The measure substantially escalates the technology war with China and impacts global distributors and fabs in third countries.