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[News] ASML CEO: China Might be Able to Produce 5nm and 3nm Chips amid U.S. Export Restrictions
Netherlands-based chip equipment maker ASML recently announced a reduction in orders for its 2025 forecast, leading to a sharp decline in its shares. The industry is concerned about ASML’s revenue from China.
According to Wccftech, ASML’s CEO Christophe Fouquet mentioned that China’s typical demand accounts for about 20% of ASML’s sales, and he expects that demand will eventually return to those levels in 2025.
He further stated that demand from China is primarily focused on legacy chips based on older-generation technology.
Notably, Fouquet claims that China may be able to produce some chips at 5nm and 3nm nodes, albeit in limited capacity and using older DUV lithography technology, according to the report from Wccftech.
Whether China has the capability to produce chips at advanced nodes has recently come under scrutiny. Fouquet’s assertion follows reports that Xiaomi has purportedly completed the tape-out of its first 3nm SoC, which might be launched next year, according to the report from Wccftech. This reported innovation in China could assist Huawei’s HiSilicon and other sanctioned Chinese firms in improving their chip design
On the other hand, according to the report from Reuters, Fouquet believes that the U.S. export restrictions will persist regardless of who wins the presidential election.
According to the report from Reuters, Fouquet mentioned that the Netherlands and Europe are debating whether further export restrictions are for national security concerns or trade policy, and whether they would even be effective. He mentioned that even American companies are also thinking about whether these regulatory measures bring benefits or harm.
ASML’s revenue decline is not entirely influenced by China, as the downturn is also attributed to the underwhelming performance of ASML’s major clients, including tech giants Intel and Samsung, according to the report from Wccftech.
According to its press release, ASML revised its total net sales forecast for 2025 to a range of €30 billion to €35 billion, down from its previous estimate of up to €40 billion. Additionally, it reported third-quarter bookings of €2.6 billion, which fell short of the average analyst estimate.
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(Photo credit: ASML)
