asml remains confident despite export restrictions
Veldhoven, Wednesday, 5 February 2025.
ASML, a significant player in the semiconductor industry, is maintaining its positive outlook on chip demand despite the U.S. export controls affecting its business in China. Christophe Fouquet, CEO of ASML, has emphasized that while China’s technological capabilities fall behind those of the West, the success of AI startup DeepSeek illustrates effective resource utilization. Fouquet believes that applications for AI will eventually exceed the demand for large-scale model training. The company views driving down AI chip costs as a long-term benefit and continues to engage with the ongoing global semiconductor demands. ASML’s strategic position and advancements in chipmaking technology are crucial for sustaining the global semiconductor supply chain.
Market impact and stock performance
ASML’s stock demonstrated resilience amid export control challenges, with shares rising 0.88% in recent trading [6]. The company has maintained its financial outlook, stating that the latest Dutch export control measures will not affect its previously issued guidance from December [6]. Despite U.S. restrictions on China-bound exports, ASML continues to see robust demand for its semiconductor equipment [1].
Strategic positioning on China and AI
CEO Christophe Fouquet has taken a measured stance on China’s technological capabilities, noting that the country remains significantly behind Western nations in advanced chip manufacturing [1][3]. He emphasized that while Chinese AI startup DeepSeek shows promise, their success does not indicate a failure of export controls [3]. Fouquet predicts that software and algorithms will become the primary battleground for AI competition [1].
Global market dynamics
The semiconductor industry faces evolving challenges, with recent data showing stagnation in industrial and automotive chip demand [2]. However, ASML maintains that driving down AI chip costs will benefit their business long-term [1]. The company plans to engage with the Trump administration to discuss its role in the U.S. market, demonstrating its commitment to maintaining strong international relationships [3][5].