Chip buyers, including the German automotive industry, require older generation computer chips that Chinese manufacturers are currently investing in, ASML (ASML.AS) CEO Christophe Fouquet said in an interview with Germany’s Handelsblatt newspaper published on Monday.
Fouquet, who became CEO of Europe’s largest tech firm in April, made these remarks as the European Commission began surveying companies, including ASML, about their views on Chinese investments in “legacy” chips, a significant revenue source for ASML.
“The automotive industry, especially the German sector, needs many more chips made with simpler, well-established technologies,” Fouquet told the paper.
Due to U.S.-led restrictions on advanced technology, Chinese firms are increasing their capacity to produce these older chips, raising Western concerns about potential long-term oversupply.
Fouquet noted that global demand for such chips is rising significantly, but manufacturing them is not very profitable, and Western companies are not investing enough in this area.
“Europe cannot even meet half of its own needs,” Fouquet stated.
Industry group SEMI estimates that Chinese chipmakers will increase their capacity by 14% in 2025, more than double the global pace, reaching 10.1 million wafers per month, about a third of total global production.
“If someone wants to slow this down for any reason, alternatives must be found. There is no point in stopping production of something you need,” Fouquet added.
