ASML chief warns EU against directing chip supplies

{"text":[[{"start":7.8,"text":"The head of Europe’s most valuable company has warned the EU against intervening directly in semiconductor supply chains, arguing that reducing reliance on foreign technology requires building stronger companies on the continent."}],[{"start":20.95,"text":"“If you don’t have your own supply chain, then how do you intervene [in the supply chain]?” Christophe Fouquet, chief executive of Dutch chip equipment maker ASML, told the FT."}],[{"start":33.6,"text":"Only about 1 per cent of ASML’s sales are in Europe, compared to about 80 per cent in Asia. That made ASML very “exposed”, Fouquet said, “because the natural business is being very close to your customer”."}],[{"start":47.650000000000006,"text":"His comments come days after the EU unveiled plans for a new chips strategy, including emergency powers to direct supplies during shortages and measures aimed at strengthening Europe’s semiconductor industry."}],[{"start":61.45,"text":"As Brussels seeks to reduce its dependence on US technology companies and Asian manufacturers, policymakers are increasingly weighing industrial intervention against efforts to create the conditions for European companies to grow and compete globally."}],[{"start":76.75,"text":"“People say: ‘let’s buy European first’,” said Fouquet, who became ASML’s chief in 2024. “I think it’s great, but you have got to have something to buy from.”"}],[{"start":87.15,"text":"France and others are also pushing for more “buy European” clauses in public procurement, while critics argue that European preferences have little effect if Europe lacks competitive domestic alternatives."}],[{"start":99.10000000000001,"text":"Fouquet said Europe needs to build as “many champions as possible” across the semiconductor supply chain and increase Europe’s share of global chip activity closer to its roughly 18 per cent share of world GDP."}],[{"start":111.55000000000001,"text":"But Europe must also avoid regulations that drive promising companies abroad, Fouquet stressed. "}],[{"start":null,"text":"

"}],[{"start":117.05000000000001,"text":"ASML is among a group of European technology companies lobbying Brussels to ease regulatory burdens, particularly in AI. He highlighted lengthy permitting procedures, access to capital and the bloc’s AI regulation as obstacles facing his business."}],[{"start":133.95000000000002,"text":"Fouquet said there remained “a temptation that is too strong for the Commission to try to do the industry’s job”, citing plans to develop data centres and chip fabrication plants."}],[{"start":145.4,"text":"Demand from AI data centres is outpacing manufacturers’ ability to increase production. As the supplier of its extreme ultraviolet (EUV) lithography machines used to manufacture the world’s most advanced chips, Fouquet said the company prepared for the surge in demand and is planning further expansion while boosting the productivity of its machines. "}],[{"start":166.5,"text":"The company is expanding near its headquarters in Veldhoven in the Netherlands and plans to increase output of its newest EUV machines by 50 per cent this year."}],[{"start":176.75,"text":"But he said it still takes about four years to build a factory in Europe because of planning constraints and lengthy permitting processes. Finding and training staff and expanding its supply network also constrained growth, he added. "}],[{"start":190.15,"text":"Beyond expanding production, the French chief executive said ASML could play a larger role as an investor in Europe’s tech scene. "}],[{"start":198.20000000000002,"text":"After investing in French AI company Mistral and German optical company Zeiss, Fouquet said the company was looking for more opportunities both within and beyond its traditional supply chains."}],[{"start":209.95000000000002,"text":"“As the company becomes more wealthy, we of course have more means to do that,” he said. “I can promise you that we will be looking at more opportunities to do that because it’s a good thing. First for the company, for people and ultimately for Europe.”"}],[{"start":232.3,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780989125_6646.mp3"}