Fouquet warns: 'EU needs to protect its champions better'

Christophe Fouquet, CEO of ASML, warns Europe that the continent's leading position in the field of semiconductors could be jeopardized if it is not better protected. While 9 EU countries, including the Netherlands, in the Semicon Coalition, ASML shares have recently fallen by almost 3%. The problem is competitive pressure and a wave of global initiatives such as American and Chinese chip funds. The Semicon Coalition, whose members include Belgium, Germany, and France, is focused on innovation and faster market introduction. However, with so much dependence on ASML in Europe, the outcome of these efforts will be significant for the continent's technological autonomy.

The critical role of ASML in Europe's semiconductor industry

ASML plays a crucial role in the European semiconductor industry thanks to its unique position as the only equipment producer capable of reliably etching the most advanced semiconductors. This makes them indispensable for producing a wide range of technologies, from AI accelerators to chips in smartphones and household appliances. Despite this monopoly position, there is growing concern about protecting this crucial industry within Europe. Christophe Fouquet has expressed his concerns about the possibility that critical European companies could be tempted to move to more favorable economic climate zones if they are not sufficiently protected. This could have dramatic consequences for Europe's technological autonomy and economic prosperity.

European chip sector unites in Semicon Coalition

Nine European countries, including the Netherlands, want to strengthen the chip industry and support European assets.

Cooperation within Europe for autonomy and resilience

Ten European countries have joined Semicon Coalition forces to anticipate the industry's imminent shifts. This cooperation aims to increase innovation capacity and improve the production and market introduction speed of semiconductors. The coalition comprises the Netherlands, Germany, and France, among others, and is committed to intensifying economic and strategic cooperation. This initiative is a sign of a shift towards more European independence in the sector, aimed at less dependence on external powers and strengthening the European technological infrastructure.

European Proactive Legislative Initiatives

In addition to joining forces in the Semicon Coalition, several European countries are working on a new chips law, the successor to the existing Chips Act. This law is designed to support semiconductor technologies. The new bill will focus specifically on allocating funds for developing chip design, materials, and equipment, considering the needs of major European players such as ASML. The bill will be presented before the summer of 2025, as part of a broader plan to face global competition and protect technologies crucial to the European economy.

Netherlands introduces brand new center to boost innovation in semiconductors

The ChipNL Competence Centre should position the Netherlands as a hub for innovation in semiconductors.

ASML's shares

Despite the prospects for European cooperation and legislation, ASML's shares have recently nearly 3% its semiconductor industry. Since ASML's products provide 90% of the global market demand for advanced semiconductor equipment, this decline demonstrates the importance of concrete steps to strengthen this essential industrial sector.

Influence of international competition

International competition in semiconductor development is escalating, with countries like the United States and China deploying considerable funds to promote their industries. The American Chips & Science Act and the Chinese Big Fund are examples of such initiatives. This global escalation emphasizes the need for Europe to strengthen and protect its autonomous production capacities. The competition is not only economic; it also touches on issues of national security and geopolitical influence, especially given the strategic applications of semiconductors in modern warfare and communication infrastructures.

The coming months will be crucial for ASML and the European semiconductor industry. How effective the Semicon Coalition and the renewed European legislative and regulatory initiatives will be depends on all countries' willingness to cooperate substantially and invest in joint growth and protection. With the pressure of international competition and semiconductors' essential role in the modern economy, the stakes are high. Europe must act decisively to maintain its position on the world stage and expand its technological leadership.