Dutch Semiconductor Giant ASML’s New CEO Takes Office, Focusing on China Business

Christophe Fouquet, the new CEO of Dutch chip equipment manufacturer ASML, took office on Wednesday (April 24). As semiconductors become a geopolitical battleground, how to lead ASML's China business is the top priority in his series of to-do items.

ASML is the largest company in the Netherlands. The high-end chip manufacturing equipment it produces has strategic value, giving the company a role that goes far beyond commercial scope.

The United States and other Western countries are worried that relevant technologies will be used by Beijing for weapons and are trying to weaken China's ability to independently manufacture advanced chips. ASML has therefore become a focus of the "chip war" between the United States and China.

Fouquet had to proceed with caution in this context. Analysts estimate that ASML will not undergo fundamental changes under Fouquet's leadership.

"Don't expect me to turn things around. The things we've been working on for years are still what we want to achieve," Fouquet said at the time of his appointment.

In a corporate video, former ASML CEO Peter Wennink said of Fouquet that he had been with the company for a long time and that he knew all of its customers, suppliers, employees and shareholders, " He is a familiar figure."

Fouquet, 50, is a French citizen. After working for semiconductor companies KLA Tencor and Applied Materials, he joined ASML in 2008 and held various positions in marketing and product management.

During his 16 years at ASML, Fouquet was regarded as a major promoter of technological innovation. He spent several years running the company's extreme ultraviolet lithography (EUV) equipment program, making ASML the only EUV equipment manufacturer in the world.

Dutch technology media Bits&Chips reported that the appointment of insiders represents continuity.

Barclays analyst Simon Coles also told AFP, "I don't expect a change of direction. The new CEO helped develop and plan the current strategy, so we expect to see to its continuation.”

Top concern: China

Fouquet's biggest concern is China. In recent years, China has become ASML's third largest market after Taiwan and South Korea.

ASML's first quarter results this year show that the Chinese market accounted for 49% of sales, a record high. But overall orders were weaker than expected, triggering a plunge in stock prices.

"Demand from China is strong because they are adding capacity," ASML Chief Financial Officer Roger Dassen said.

In the face of international tensions, Fouquet once said that decoupling the semiconductor supply chain is "extremely difficult and extremely expensive."

"Sooner or later people will realize that the only way to succeed in semiconductors is through collaboration," he told Nikkei Asia last year.

The Dutch government decided last year to cooperate with the United States' request to restrict ASML's exports to China. In January this year, the Dutch government revoked some of ASML's licenses to export equipment to China, sparking anger in Beijing.

Dutch Prime Minister Mark Rutte visited China last month, and the export of chip manufacturing equipment was one of the topics of discussion during his meeting with Chinese President Xi Jinping.

The United States further sought ASML to stop providing maintenance services for Chinese customer equipment earlier this month. Reuters reported that this is a diplomatic and commercial problem for the Dutch government, but there are signs that the Netherlands will continue to align with Washington.