ASML’s CEO Believes That Europe Needs China’s Legacy Chips To Sustain Demand But 10 Years Behind In Chip Tech

ASML’s CEO has reiterated the importance of China’s semiconductor production for global markets, despite them being years behind in technology.

ASML’s CEO Claims That Europe Has A Long Way To Go Before Being Self-Subsistence In Semiconductor Production, China Might Be Years Behind In Chip Technology But Needed For The Region

The Dutch chipmaker has given out statements in favor of the growth occurring in the Chinese semiconductor industry, as the firm previously claimed that the US-China hostilities had no factual basis and it was simply a matter of political differences that have turned out into measures such as sanctions from both sides.

Now, in a statement to the German business outlet Handelsblatt (via Fortune), ASML’s CEO Christophe Fouquet believes that the world needs the “legacy chips” being produced by China and that they will help fill the supply-demand gap in Europe.

Despite measures such as the EU CHIPS Act, regional semiconductor growth is at an all-time low, and mega projects, such as the Intel fab in Germany, are halted due to financial issues. This shows that self-production is out of the equation for European nations. Fouquet says that Europe is unable to meet the demand for semiconductors, and in-house facilities only cater to 50% of the total demand from the markets.

There is no point in stopping someone from producing something you need. With Russian gas, people have understood that alternatives must be found, but not yet with chips.

– ASML’s CEO Christophe Fouquet

So, while the EU markets are poised to grow rapidly, there are some concerns surrounding the chip supply. Fouquet believes that if the global powers are to implement further restrictions on China, they must devise a semiconductor production plan in their nations since, without this, it is deemed difficult for the supply chain to fulfill industry demand. Chinese semiconductor markets have started to witness massive breakthroughs this year, with the nation’s biggest foundry, SMIC, reportedly developing a 5nm process successfully, which shows that the pace of innovation is at its peak.

If you look at the advanced chips today, I think it is common knowledge that China is probably ten years behind the USA. Intel’s CEO Pat Gelsinger has expressed this very clearly in public. This is why China is most active in not-so-modern chip technologies.

ASML’s CEO believes that China is still a decade behind the US when it comes to semiconductor technologies. The country has a long way to go, but given its proficiency in older processes, that does put it on a slight edge. Upon being asked whether China could recreate EUV lithography equipment, ASML says that it’s far from possible right now, given the complexities involved in the development process.