Tech war: ASML CEO sees US pressure building for more China semiconductor restrictions

The Dutch firm has a monopoly on making the lithography machines that help the world’s largest semiconductor foundries produce advanced chips

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ASML chief executive Christophe Fouquet said much of the company’s business in China is focused on mature chip technology. Photo: Shutterstock

Published: 8:14pm, 22 Oct 2024Updated: 8:15pm, 22 Oct 2024

ASML Holding chief executive Christophe Fouquet expects pressure will grow from the United States to further restrict sales of semiconductor technology to China, the biggest market for the Dutch producer of chip-making machines.

“If you look at the geopolitical landscape, I think it’s clear that the US will continue to apply pressure on their allies for more restrictions,” Fouquet said in an interview during the Bloomberg Tech Summit in London on Tuesday. “The question is what is right for the Netherlands? What is right for Europe?”

Washington has been aiming for years to limit China’s rise in the semiconductor sector, through repeated rounds of export controls that have targeted the sale of advanced artificial intelligence chips and chip-making equipment. The Dutch government has struggled to find a middle ground between its US ally and the biggest market for its biggest company.

Fouquet said much of ASML’s business with China is focused on mature technology that is less relevant to national security concerns.

“A lot of the focus in China today is on mainstream semiconductors,” he said. “This is very different from AI [artificial intelligence].”

ASML Holding chief executive Christophe Fouquet. Photo: Reuters

ASML has a monopoly on making the lithography machines that help the world’s largest semiconductor companies to produce most advanced chips that power everything from Apple’s iPhones to Nvidia Corp’s AI accelerators. China has never been able to buy ASML’s most advanced machines, which use so-called extreme ultraviolet technology.