ASML Holding NV, a critical cog in the global semiconductor industry, said a former employee in China stole data about its technology, a disclosure that threatens to inflame political tensions amid heightened concerns about espionage.

The Dutch technology company, which makes machines needed to produce high-end chips used in everything from electric vehicles to military gear, initiated an internal investigation and tightened security controls after recently discovering the data breach. It said on Wednesday that export controls may have been violated, exposing the company to a potential regulatory backlash.

ASML’s data breach involved technological information but not hardware and ...

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