European car companies and other chip buyers are struggling to find enough of the older generation computer chips that they rely on, according to ASML CEO Christophe Fouquet. Chip giant ASML is the Europe’s largest technology company. ASML CEO made the comments in an interview with Germany’s Handelsblatt newspaper.
Legacy chips in demand
This news comes as China, facing limitations on obtaining more advanced chip technology, is ramping up production of these “legacy chips” — those made with older, established methods. “The automotive industry in particular, including the German one, needs a lot more chips that are manufactured using simpler, long-known technologies,” Fouquet told the paper.
Europe falling behind
ASML’s CEO Fouquet said that European companies aren’t investing enough in producing these essential chips, leaving them dependent on China. Europe currently can’t even meet half its own needs for these chips. “Europe cannot even cover half of its own needs,” Fouquet said. “If someone wants to slow it down, for whatever reason, then alternatives are needed. There is no point in stopping someone from producing something you need,” Fouquet added.
Global demand on the rise
While Western countries might be focused on the newest chip technologies, demand for these older chips is actually increasing worldwide. Fouquet argues that restricting Chinese production wouldn’t solve the problem, as Europe would still need the chips they produce.
Industry estimates suggest China’s chip production capacity will grow at more than double the global rate in 2025, potentially giving them a third of the world’s chip production.
Legacy chips in demand
This news comes as China, facing limitations on obtaining more advanced chip technology, is ramping up production of these “legacy chips” — those made with older, established methods. “The automotive industry in particular, including the German one, needs a lot more chips that are manufactured using simpler, long-known technologies,” Fouquet told the paper.
Europe falling behind
ASML’s CEO Fouquet said that European companies aren’t investing enough in producing these essential chips, leaving them dependent on China. Europe currently can’t even meet half its own needs for these chips. “Europe cannot even cover half of its own needs,” Fouquet said. “If someone wants to slow it down, for whatever reason, then alternatives are needed. There is no point in stopping someone from producing something you need,” Fouquet added.
Global demand on the rise
While Western countries might be focused on the newest chip technologies, demand for these older chips is actually increasing worldwide. Fouquet argues that restricting Chinese production wouldn’t solve the problem, as Europe would still need the chips they produce.
Industry estimates suggest China’s chip production capacity will grow at more than double the global rate in 2025, potentially giving them a third of the world’s chip production.