asml ceo's taiwan visit signals deeper ties with tsmc
Taipei, Monday, 6 January 2025.
Christophe Fouquet, the CEO of ASML, is set to visit Taiwan with a delegation of senior executives for strategic meetings with TSMC leaders, including chairman C.C. Wei. These discussions come ahead of TSMC’s quarterly earnings release and are crucial for future collaboration. ASML aims to strengthen its position by encouraging TSMC to increase orders for its High NA EUV equipment, each worth approximately $380 million. This visit highlights the importance of ASML’s technology in TSMC’s process roadmap, despite recent U.S. pressure on ASML regarding services to Chinese customers. The meetings will also address geopolitical influences following the inauguration of U.S. President-elect Donald Trump. ASML expects significant revenue growth over the next five years, projecting sales between EUR 44 billion and EUR 60 billion by 2030. This visit underscores ASML’s commitment to maintaining strong relations with TSMC, its key client.
Market reaction and stock performance
ASML’s strategic move has already garnered positive market response, with the company’s stock rising 5% in recent trading [3][6]. This surge aligns with broader semiconductor sector strength, as TSMC shares also reached an all-time high with a 4.65% increase [3]. The market optimism reflects confidence in ASML’s technological leadership and its crucial role in advanced chip manufacturing [1].
Technology roadmap discussions
A key focus of the meetings will be TSMC’s integration of ASML’s advanced technology. TSMC’s deputy co-COO Kevin Zhang has confirmed that while the A16 process will not utilize High NA EUV technology, implementation is planned for the enhanced A14P generation [1]. The discussions are particularly significant as each High NA EUV machine commands approximately US$380 million [1].
Strategic outlook and growth projections
ASML projects robust growth with revenue expected to reach between EUR44 billion and EUR60 billion by 2030, maintaining a gross margin of 56% to 60% [1]. The company anticipates revenue growth of 8-14% over the next five years [1]. Notably, ASML’s revenue contribution from China is expected to decrease to about 20% after exceeding 30% in previous years [1][4].