US Commerce Secretary Howard Lutnick warned ASML that one of its advanced EUV chipmaking machines may have reached China, potentially breaching US export controls. ASML denies ever shipping EUV systems or components to China. The US Commerce Department has refused to show evidence that ASML shipped EUV systems or components to China, according to the Times of India. US export controls have barred ASML from selling EUV systems to China since the first Trump administration, according to TechCrunch.

The standoff between the US and ASML threatens ASML's market position and China revenue. ASML’s chief criticizes the EU’s semiconductor controls as wrongheaded, arguing no region controls enough of the AI supply chain to direct outcomes through chip allocation alone, according to RCR Wireless. Meanwhile, the UK and France are pursuing a pragmatic version of sovereign AI focused on compute infrastructure, data governance, trusted hosting, niche specialties, and national assets, according to RCR Wireless.

The chief executives of seven European technology companies — ASML, Airbus, Ericsson, Mistral AI, Nokia, SAP and Siemens — published a joint opinion piece demanding that Brussels simplify the EU AI Act, according to European Business Magazine. The CEOs argue that Europe is still debating AI regulation while the United States and China have moved on to scaling AI in physical systems and robotics. The companies they lead generate hundreds of billions of euros in annual revenue and employ more than half a million people, according to European Business Magazine.

The US software sector fell 14.5% in January 2026, its worst monthly performance since October 2008, according to Euronews. The sector experienced a further 10% decline in less than two weeks in early February 2026, according to Euronews. A report from the Times of India states ASML holds a $700 billion monopoly in EUV chipmaking technology, though this figure is not corroborated by other sources.