> The main reason ASML has EUV is because it was funded by the US government to develop it

That seems like 20% true. The US had a brief EUV program ("EUV LLC") in the late 90s - it wasn't much compared to how much difficult, risky, and expensive development obviously still needed to be done afterwards. The EU also has basic semiconductor research, notably IMEC.

I have also seen that claim in a YouTube video by "Asianometry" and I wonder what the original source of that apparent misinformation is.

The company (originally named ASM Lithography, current name ASML, which is an official name and not an abbreviation)[10] was founded in 1984 as a joint venture between the Dutch companies Advanced Semiconductor Materials International (ASMI) and Philips.

https://en.wikipedia.org/wiki/ASML_Holding

If I recall properly, and if I trust what I read/viewed from the internet ages ago, EUV optics is from Germany (zeiss), and the EUV light is from cymer. cymer almost lost their part because they had been unable to deliver enough EUV light power for too long (in the end, it seems they shine their massive CO2 laser on a tin droplet, 2 times instead of one and yield enough power). mask/wafer alignment equipment, dunno where they are from (nanometric piezo-electric motors, with probably laser interferometer). Then, at the time everything was run in extreme vaccum, but heard something about hydrogen gas.

From what I read regarding the current block, USA couldn't force ASML under current US law, because ASML uses less than 25% US technology.

But USA didn't have to force them. ASML's EUV tech started out as a US funded venture, so I don't think they want to start a fight with USA.

And USA could obviously change its laws to block sales of technology even if less than 25% of the end product is from USA.

It's the Cold War and national security is at stake, you're not going far enough.

Think back to what went on from 1950-1990 in Europe and Asia, except it'll be even worse.

Blocking Nordstream 2 is the very bottom of the barrel compared to what's coming.

After a brief slumber the Russian Empire has awoken again in Europe and it's annexing territory (again). The Dutch would be foolish to spar with the US over ASML at this juncture. Dealing with Russia in Europe and China in Asia will take a concerted front by the US, Europe and their allies.

Germany did that

It is certainly not hard to destroy the machines. But getting the expertise and data is worth a lot anyways, if you are already at this stage.

TSMC also has the WaferTech fab in the US and is currently building fabs in the US and Japan. I imagine geopolitical diversity is one goal in the placement of those new fabs.

But it'd still lead to a massive global chip shortage if TSMC's facilities in Taiwan were wiped out. And I guess that is a deterrent that Taiwan can use against China.