China's Semiconductor Manufacturing International Corp (SMIC) has reportedly used equipment from ASML Holding NV to produce an advanced processor for a Chinese smartphone. This has raised concerns in the U.S. as it suggests China might be circumventing export restrictions to advance its chipmaking capabilities. The U.S. sanctions affect ASML shipments to six fabs in China, including one SMIC facility. Recent moves by the U.S. administration have further tightened export controls, impacting ASML's sales in China.