ASML's Commitment to China: A Reuse-and-Repair Centre Amid Geopolitical Tensions
ASML Moves Forward with Chip Reuse Centre in Beijing
ASML Holding, the leading supplier of advanced semiconductor technology, plans to construct a reuse-and-repair centre in Beijing this year, demonstrating its intentions amid the ongoing US-China tech war. Even with pressure from Washington regarding export control rules affecting lithography systems sales, ASML remains dedicated to engaging with the world’s second-largest economy.
Significance of the Project in Current Geopolitical Climate
The company's planned facility, highlighted in its annual report, illustrates ASML's response to geopolitical challenges. China currently represents ASML's largest market, contributing 36.1 percent of its sales in 2024, surpassing Taiwan for the first time.
- In 2023, ASML's sales from China reached €10.2 billion (US$10.9 billion).
- Despite challenges, the strong performance is supported by a high backlog in lithography system sales.
- Geopolitical risks may alter future sales in China as new export regulations take hold.
- ASML anticipates significant changes in supply dynamics due to international sanctions.
Future Outlook for ASML in the Semiconductor Industry
While ASML projects that sales from China could contribute significantly less by 2025, the tech tensions and geopolitics will continue to shape its strategy and engagement in the region. CEO Christophe Fouquet emphasized the need to consider both the Netherlands' and Europe’s interests in this complex scenario.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.