ASML CFO: Chinese Chip Manufacturing Technology Still Lags Behind by Many Years

On Thursday, January 30th, a senior executive from Dutch lithography machine manufacturer ASML Holding NV stated that ASML’s chip manufacturing technology far surpasses that of Chinese competitors, with Chinese rivals still lagging behind by many years.

According to Bloomberg, ASML’s Chief Financial Officer, Roger Dassen, interviewed at the company’s headquarters in Veldhoven, Netherlands, expressed that ASML’s chip manufacturing technology is far ahead of Chinese competitors.

“Our technology is very advanced, and it took us many years to reach the level we are at today,” he said.

Despite the Chinese Communist Party investing significant resources in developing chip technology, Chinese companies still lag behind in manufacturing the most advanced chips and the equipment required for chip production. ASML dominates the market for cutting-edge lithography machines. These machines are essential tools for major semiconductor companies worldwide in producing advanced chips needed for products like iPhones, NVIDIA AI accelerators, and more.

In December last year, ASML’s Chief Executive Officer, Christophe Fouquet, in an interview with Dutch newspaper NRC Handelsblad, stated that due to Chinese companies’ inability to access cutting-edge EUV lithography tools, China’s chip manufacturing technology still lags behind industry giants like Intel, TSMC, and Samsung by 10 to 15 years. It is widely known that even with top-notch DUV tools, chip manufacturers like SMIC cannot effectively compete with TSMC’s process technology.

“By restricting the export of EUV tools, China’s (CCP chip technology) will lag behind the West by 10 to 15 years,” Fouquet said. “This definitely has an impact.”

ASML plays a crucial role in the global chip supply chain, with nearly 90% of the world’s chips produced using ASML’s lithography systems. In the semiconductor manufacturing industry, deep ultraviolet (DUV) exposure machines can be used for manufacturing chips with a process node of 7 nanometers and above, covering the majority of digital chips and virtually all analog chips.

Due to the strong demand for AI chips, ASML’s latest financial performance is impressive. In the fourth quarter of last year, revenue reached 9.26 billion euros, surpassing market expectations of 9.07 billion euros; net profit was 2.69 billion euros, also higher than analysts’ forecast of 2.64 billion euros. New orders increased by 169% to 7.09 billion euros, far exceeding the market’s expected 3.99 billion euros, with EUV lithography equipment orders reaching 3 billion euros.