ASML warns about IP-infringing Chinese ‘rival’

ASML has reached out to customers urging them to refrain from doing business with Dongfang Jingyuan Electron, the company states in its 2021 annual report. The Chinese company appears to be marketing products that infringe on ASML’s intellectual property rights. The litho giant has also shared its concerns with the Chinese authorities. “ASML is monitoring the situation closely and is ready to take legal action if appropriate.”

Dongfang is associated with XTAL, which has been ordered by a US court to pay ASML 845 million dollars in damages for stealing intellectual property from ASML Brion. The founder of both XTAL and Dongfang, former ASML Brion employee Zongchang Yu, evaded criminal prosecution by fleeing the US. Last year, ASML already said that it was concerned about the stolen IP being marketed in China.

The IP in question concerns a legacy yield-enhancing solution that was developed by Brion before being acquired by ASML in 2007.