ASML CEO Christophe Fouquet says the Dutch chip equipment maker’s dominance in advanced lithography is the result of decades of technological development and close cooperation with a global network of suppliers.
Based in the Dutch town of Veldhoven, ASML has become one of the most important companies in the global technology industry, supplying the machines needed to manufacture increasingly advanced semiconductors used in artificial intelligence applications.
The company has a monopoly on extreme ultraviolet (EUV) lithography machines, which are essential for producing some of the most sophisticated chips.
A critical link in the AI supply chain
ASML employs tens of thousands of people and works with hundreds of major suppliers and thousands of other companies. Its most advanced EUV machines contain more than 100,000 individual parts.
Fouquet says ASML’s position emerged from the complexity of the technology and the company’s decision to work with specialist manufacturers rather than produce every component itself.
German company Zeiss supplies the machines’ advanced optics, while Trumpf provides lasers and VDL works on mechatronics.
“The more complex our products became, the more advantage we got in terms of competitiveness,” Fouquet said.
He said ASML would not have been able to develop EUV technology on its own.
The company’s EUV machines use lasers and molten tin droplets to generate extremely short-wavelength light, which is then directed through precision mirrors to print increasingly small circuits onto silicon wafers.
A supply chain with 100,000 parts
The scale of ASML’s supply chain also makes it difficult to rapidly increase production.
Each EUV machine involves around 200 principal suppliers and about 2,000 companies overall. ASML has occasionally acquired suppliers when their financial position threatened the continuity of production, including laser manufacturer Cymer in 2013.
Fouquet said the company’s relationship with its customers was based on trust, particularly because ASML is the sole supplier of the most advanced EUV systems.
“Our profit will grow with the [profits] of the industry, but we are not going to abuse the situation,” he said.
ASML has also taken an 11% stake in French AI company Mistral, although Fouquet stressed that collaboration remains more important to the company than acquisitions.
China restrictions create tension
One of the biggest challenges for ASML is the restriction on exports of its most advanced EUV technology to China.
Fouquet said he understood that certain technologies could be subject to restrictions for security reasons, but warned that excessive controls could encourage China to accelerate development of its own semiconductor equipment.
“If you over-restrict, you bring desperation,” he said, arguing that this could eventually create stronger competitors.
Fouquet said his comments were directed not only at the US administration but at policymakers in the Netherlands and the European Union who decide on export controls.
ASML sees a long AI cycle
Fouquet also rejected the idea that the current surge in AI investment is simply a short-term phenomenon.
He acknowledged that financial markets were volatile but said the impact of AI on society and industry would extend over the next decade or more.
“I think the AI effect on society and industry is going to take 10 to 15 years. We’re only seeing the tip of the iceberg,” he said.
ASML expects its EUV technology to continue evolving during that period, including developments that could allow transistor circuits to be stacked and improvements in the precision of the optical systems.
Fouquet also pointed to humanoid robots and space technology as areas with significant potential, while saying that technological breakthroughs require concentrated investment and a strong belief that a particular technology is essential.
For ASML, he said, that conviction was what ultimately enabled the company to spend decades developing EUV technology despite the risks involved.
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