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A Dutch company that manufactures cutting-edge semiconductor circuits has accused one of its former employees of stealing its technology on behalf of a state-supported Chinese company.
Zongchang Yu worked at ASML until 2012 and went on to found Dongfang Jingyuan in China two years later. Now, he’s wanted in California on charges of stealing technology from his former employers.
ASML employees pose in front of the partially completed frame of the company?s newest product in Veldhoven, Netherlands, in January 2022, in this handout picture released by ASML. (Helmut Issler ZEISS/Handout via Reuters / Reuters Photos)
The company, which is based in the Netherlands, is the world’s only manufacturer of extreme ultraviolet lithography machines, which run upwards of $160 million and are as large as a bus. The machines are used to create microscopic circuits onto silicon wafers, creating some of the most advanced microchips in the world.
The company is prohibited from selling its advanced machines to China, leaving the country to rely on older technology and struggle to stay competitive in the global economy.
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In an annual report, ASML accused Dongfang Jingyuan of stealing its trade secrets. In 2018, ASML sued Xtal, a now-defunct U.S.-based company connected to Dongfang and set up by Yu in 2014, causing the company to go bankrupt. But by then, Yu was already in Beijing.
In court, ASML accused Dongfang and Xtal of recruiting its engineers, including one who allegedly stole some 2 million lines from the company, Bloomberg reported.
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In recent years, many Chinese nationals living in the U.S. have been accused of stealing business practices and trade secrets on behalf of Beijing.
