ASML CEO Considers Relocating Amidst European Market Struggles
Veldhoven, Friday, 28 March 2025.
ASML’s CEO warns of potential relocation due to unfavorable European market conditions, posing a threat to the Netherlands’ semiconductor industry.
Growing Tensions Over Export Controls
ASML’s incoming CEO Christophe Fouquet has expressed particular frustration with Europe’s ‘blind following’ of US export restrictions, which are preventing the company from delivering many of its chip machines to China [1]. This concern is particularly significant given that China accounted for 41% of ASML’s lithography shipments in 2024 [3], making it a crucial market for the world’s leading semiconductor equipment manufacturer.
Strategic Importance and Market Dominance
ASML maintains a near-monopoly on extreme ultraviolet (EUV) lithography technology, which is essential for producing advanced chips at 3nm and below [3]. The company’s technological leadership is evidenced by its record-high order backlog of €36 billion, including €7.1 billion in new orders from Q4 2024 alone [3]. Despite this strong position, ASML’s stock has experienced a significant decline, falling 25.1% over the past year [3].
European Response and Future Outlook
In response to these challenges, the European Parliament has called for a new investment program, the Second EU Chips Act, specifically targeting AI chips and addressing technological gaps [2]. The urgency of this situation is underscored by a letter signed by 54 lawmakers stating that ‘Europe cannot take continued access to advanced technologies for granted’ [2]. Ten European nations have united in the Semicon Coalition to enhance semiconductor innovation capacity and market speed [7].
Competitive Pressures and Industry Response
The situation has become more complex with the emergence of new competitors like China’s SiCarrier, which debuted its semiconductor manufacturing tools on March 27, 2025 [4]. While ASML’s technology remains superior, particularly in EUV lithography, the company faces mounting pressure from both market conditions and geopolitical tensions [7]. Fouquet has explicitly warned that ‘critical European companies could be tempted to move to more favorable economic climate zones if they are not sufficiently protected’ [7].