ASML’s CEO Believes That Europe Needs China’s Legacy Chips To Sustain Demand But 10 Years Behind In Chip Tech

ASML's CEO has reiterated the importance of China's semiconductor production for global markets, despite them being years behind in technology.

ASML's CEO Claims That Europe Has A Long Way To Go Before Being Self-Subsistence In Semiconductor Production, China Might Be Years Behind In Chip Technology But Needed For The Region

The Dutch chipmaker has given out statements in favor of the growth occurring in the Chinese semiconductor industry, as the firm previously claimed that the US-China hostilities had no factual basis and it was simply a matter of political differences that have turned out into measures such as sanctions from both sides.

Related Story TSMC, ASML In Geopolitical Crosshairs

Now, in a statement to the German business outlet Handelsblatt (via Fortune), ASML's CEO Christophe Fouquet believes that the world needs the "legacy chips" being produced by China and that they will help fill the supply-demand gap in Europe.

Despite measures such as the EU CHIPS Act, regional semiconductor growth is at an all-time low, and mega projects, such as the Intel fab in Germany, are halted due to financial issues. This shows that self-production is out of the equation for European nations. Fouquet says that Europe is unable to meet the demand for semiconductors, and in-house facilities only cater to 50% of the total demand from the markets.

So, while the EU markets are poised to grow rapidly, there are some concerns surrounding the chip supply. Fouquet believes that if the global powers are to implement further restrictions on China, they must devise a semiconductor production plan in their nations since, without this, it is deemed difficult for the supply chain to fulfill industry demand. Chinese semiconductor markets have started to witness massive breakthroughs this year, with the nation's biggest foundry, SMIC, reportedly developing a 5nm process successfully, which shows that the pace of innovation is at its peak.

ASML's CEO believes that China is still a decade