asml ceo warns europe: protect us or we leave

2025-03-26 asml

Amsterdam, Wednesday, 26 March 2025.
asml ceo christophe fouquet has issued a stark warning. europe must provide better protection or risk losing the semiconductor giant. fouquet anticipates increased demand for euv machines, driven by advancements in ai. he fears asml’s current protections are insufficient. the company accounts for over 90% of global sales for machines used in even less sophisticated processors. a relocation would significantly impact europe’s tech industry. the euv lithography machines are complex, consisting of over 100,000 separate parts and weighing tens to hundreds of tons, with each machine costing over 100 million euros.

asml’s market dominance

ASML’s position in the semiconductor industry is virtually unmatched [1]. The dutch company stands as the sole manufacturer of equipment capable of reliably etching advanced semiconductors [1]. These semiconductors are critical for artificial intelligence accelerators and smartphone chips [1]. ASML also dominates the market for less sophisticated processors found in everyday appliances, commanding over 90% of global sales [1]. This quasi-monopoly underscores ASML’s importance in the global technology supply chain [6].

china’s growing influence and asml’s strategy

China represents a significant market for ASML, with 2024 sales reaching approximately 9 billion euros, a substantial increase from 6.4 billion euros the previous year [2]. However, due to us restrictions, the dutch government has withdrawn licenses for some advanced duv machines [6]. ASML anticipates that sales to China will moderate, accounting for about 20% of total revenue in 2025 and beyond [2]. Despite these restrictions, ASML plans to open a facility in beijing to recondition used machine parts, signaling a continued commitment to the chinese market [6].

impact of ai on asml’s order book

The rise of artificial intelligence is a key driver for growth in the semiconductor industry, directly benefiting ASML [2]. In the fourth quarter of 2024, orders for ASML tools exceeded 7 billion euros, doubling the expected 3.5 billion euros [2]. Half of these orders were specifically for euv machines needed for ai chip production [2]. Fouquet noted that the growth in ai is reshaping market dynamics, creating both opportunities and risks for asml’s revenue outlook in 2025 [2].

european competitiveness and asml’s role

ASML’s warning highlights broader concerns about europe’s competitiveness in the technology sector [5]. A recent summit in brussels, involving asml, ericsson, nokia, and sap, addressed the need for urgent action to bolster europe’s technological future [5]. The summit emphasized creating a more favorable regulatory environment and attracting more investors [5]. European companies lag behind the usa and china in r&d spending and capital formation, facing a gap of 450 billion euros in the technology sector alone [5]. This lack of investment contributes to an annual 20% decrease in productivity [5].

asml stock and financial instruments

Following better-than-expected fourth-quarter earnings, ASML’s stock rose by 4.3% [2]. The company reported earnings per share of 6.85 euros, exceeding the expected 6.68 euros, and quarterly revenue of 9.2 billion euros, surpassing the forecast of 9 billion euros [2]. Options warrants on asml are available, with a base price of 760.00 eur and a valuation day set for june 19, 2026 [4]. However, investors should be aware that options do not provide capital protection, and a falling stock price could result in a total loss [4].

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EUV lithography Industry relocation