Christophe Fouquet, CEO of Dutch tech giant ASML Holding, said on Sunday that the recent standoff between the Netherlands and China over chipmaker Nexperia highlights the fragility of supply chains and that dialogue is crucial to preventing the dispute from escalating.
Speaking on the Dutch television program *Buitenhof*, Fouquet stated that the Nexperia incident serves as a stark reminder of the criticality of the semiconductor industry and the "fragility of the ecosystem." He pointed out that it highlights the importance of all parties "demonstrating responsibility," adding that "dialogue is crucial."
Fouquet said, "The key to this issue is dialogue before things escalate, but this time it may be the opposite. It's a serious matter."
Nexperia, headquartered in Radboud, Netherlands, and owned by China's Wingtech Technology Co., Ltd., primarily supplies power control chips to automakers such as BMW and Volkswagen. In late September, the Dutch government abruptly seized key decision-making power at the company, triggering retaliation from Beijing and causing disruptions to the supply of critical automotive components, disrupting car production in Europe and elsewhere.
With China resuming some exports of Nexperia chips earlier this month, signs of easing have emerged. The Dutch government announced on Thursday that it will send a delegation to China early this week to seek a mutually acceptable solution.
Fouquet stated that the tensions between the two countries will not affect ASML in the short term, adding that most of the crisis is over. (Original text: The tensions between the two countries won't impact ASML in the short term, Fouquet said, adding that the biggest part of the crisis has passed.
As the world's only company producing cutting-edge lithography machines, ASML supplies equipment to numerous companies, including TSMC and Intel, which use these machines to manufacture advanced chips for a wide range of products, from smartphones to AI accelerators.
ASML Shares Future Development Direction
Few companies can be considered at the heart of modern technological progress, but ASML is one of them. This Dutch multinational is the only company in the world capable of producing extreme ultraviolet (EUV) lithography machines - the key to manufacturing the smallest, fastest, and most powerful semiconductor chips. Without ASML, the world's most advanced computing systems, from AI data centers to smartphones, would cease to exist.
Founded in Feldhoven in 1984, ASML employs over 44,000 people worldwide and had net sales of €28.3 billion ($33.1 billion) in 2024. Its current market capitalization exceeds €350 billion ($406 billion), making it Europe's most valuable company, but its rise to global indispensability is no accident.
For over a decade, ASML has invested billions of dollars in developing EUV lithography technology, which requires breakthroughs in physics, optics, and materials science. The progress has been uncertain, and many have even doubted its success. To accelerate research and development and share the risks, Intel, TSMC, and Samsung made a rare decision: to directly invest in ASML's extreme ultraviolet lithography project. This vote of confidence ultimately helped bring the technology to fruition.
This experience shaped the philosophy that runs through the company today. "We have a very strong sense of responsibility to the industry," said Christophe Fouquet, a 52-year-old French engineer who will become CEO in April 2024. "We are keenly aware of our critical position, and being in a critical position means taking on the corresponding responsibilities."
He clearly stated that holding a senior leadership position in such a pivotal company requires a long-term vision and a restrained approach. "Some might say, 'Oh, we're in a critical position now, so we should do whatever it takes to raise prices and make more profits.' This might work if everything stagnates. But this industry is constantly evolving, and we are a crucial link in it."
He added that trust in customers is the compass guiding ASML's long-term development. "We discuss the direction for the next ten years and then plan for the following ten. This sense of responsibility, and the belief that 'the best is yet to come,' gives ASML a very long-term vision."
"We haven't done this in Europe for historical reasons. If we look at our workforce, we see it's still very localized."
ASML's competitive advantage lies not only in its technology but also in the ecosystem it has built around it - a network of over 5,000 suppliers, 80% of which are located in Europe.
"We play a vital role," he said. "But are we the only force driving Moore's Law? Of course not. Historically, many companies have played unique roles, collaborating with each other. We do things that others don't know how to do, but many others are doing things that we ourselves don't even know how to do. So, we must work together."
He believes Europe has a structural advantage in retaining expertise: unlike California, where engineers come from all over the world and often return home taking their expertise with them, Europe's talent base is more locally rooted.
"We haven't achieved this in Europe yet due to historical reasons. If we look at our workforce, we see it's still very localized," he said. "Several key factors make lithography technology harder to replicate. Only Japan and Europe have been able to do it."
While ASML possesses superb technology, its greatest strength may lie in its culture. Fukai describes the company as one that has maintained curiosity and cohesion while growing and expanding.
"ASML is a large company today, but it still feels like a big family," he said. "The leadership team is very approachable. There are no hierarchies or ideological distinctions. Employees can talk to anyone at any time. This also helps foster this corporate culture."
He stated that this openness is the cornerstone of ASML's innovation. "Sometimes people say, 'We don't see politics at ASML.' Of course, there is politics within ASML; after all, it's a huge company. But what they mean is that politics is not the driving force behind the company's growth. What truly drives us is the value we create for our customers."
When you lead ASML, you quickly realize that everything you do has an impact on the world.
If innovation, collaboration, and culture are the driving forces behind ASML's success, then geopolitics is increasingly shaping its future. Located at the crossroads of global power, export controls, subsidies, and strategic alliances are just as crucial to the company's path as engineering breakthroughs.
"When you lead ASML, you quickly realize that everything you do has an impact on the world," Fauci reflected. "We are at the center of something far larger than ourselves."
This responsibility demands a humble and genuine style of leadership. "I want people to feel they can come to me, and I will listen carefully," he said. "At the same time, I expect transparency and accountability."
In an environment where technological ambition intertwines with geopolitical uncertainty, humility and focus also become paramount.
"Even as CEO, there are things you can't control," Fauci noted. "For example, we can't control the macroeconomy or geopolitics. What we can control is having the right products, building good relationships with customers, and entering markets that are crucial for the future. If we can do these things well, we might encounter some storms, but the sun will always shine again."
In Fauci's view, the most meaningful leadership begins when personal approval is no longer the goal. "This shift in perspective is truly liberating," he says. "Because now you come to work not to prove anything, but to think: 'What changes can we make? What should we do next?' This gives you much more room to create."
Source: Content compiled from Semiconductor Industry Observer
