Christopher Fouquet, the new president and CEO of Dutch lithography giant ASML, recently emphasized that the global automotive industry, including Germany, has a growing demand for traditional process chips.
This mature process chip usually refers to products with 28nm and above process technology, and is widely used in many fields of everyday technology products.
Fouquet succeeded Peter Wennink in senior positions at ASML in April this year. Under his leadership, ASML noted that although the EU is seeking industry opinions on expanding China's traditional process chip production capacity, Western countries are still underinvesting in the production of such chips. He pointed out that the current global demand for such chips has increased dramatically, but their manufacturing margins are low, which has led to underinvestment by Western companies, making it difficult for Europe to meet its own needs.
In an interview with the media, Fukai made it clear that the automotive industry, especially in countries such as Germany, has a high demand for mature process chips that use known technologies. He stressed that in the face of this trend, investors and manufacturers in related industries need to rethink their strategic layout and investment decisions.
China is expected to dominate global chip manufacturing capacity by 2025, according to forecasts from the International Semiconductor Industry Association (SEMI), with its output expected to grow by 14% to 10.1 million pieces per month, accounting for nearly one-third of the world's total output. This growth trend is indicative of China's rapid development and expansion in the semiconductor sector.
Industry expert Fuquet pointed out that any attempt to limit the production speed of Chinese chipmakers would need to consider alternatives. He stressed that hindering others from producing what they need is not only unrealistic, but also lacks strategic significance.
On the other hand, the scope of the EU's consultation on the European chip industry has gone beyond the scope of the security investigation initiated by the US Department of Commerce to domestic companies, showing that the EU is highly concerned about the security of the semiconductor industry chain.
In December, the U.S. Department of Commerce announced information management for traditional semiconductors produced in China, with the aim of monitoring and tracking the dependence of U.S. companies on Chinese technology. This decision reflects the U.S. government's concern about the security of technology supply chains.
In response to this move by the U.S. Department of Commerce, the Chinese Ministry of Foreign Affairs said that the formation and development of the global production and supply chain is the result of the combined effect of market rules and enterprise choices. They warned that instrumentalizing and weaponizing economic and trade issues violates the principles of market economy and fair competition, and not only exacerbates the security risks of the global supply chain, but ultimately harms global interests, including the United States. The Chinese Foreign Ministry stressed that the United States should respect international economic and trade rules and the principles of market economy, and create a more favorable environment for economic and trade cooperation between China and the United States.