ASML’s Former CEO Believes The US-China Chip War Has No “Factual Basis”, Says That It Will Continue For Decades

ASML's former CEO believes the US-China chip war has no "ideology" yet is expected to continue for decades, bringing the semiconductor industry under fire.

The Dutch firm, Europe's largest semiconductor company, believes that the US has forced them to adopt a business model they certainly don't prefer. In an interview with the Dutch broadcaster BNR, Peter Wen, former CEO of ASML, exclaimed that the US-China dispute lacks factual basis and that both nations are involved without a certain goal, and their hostilities have ultimately translated into sanctions from both ends, making companies like ASML restructure their roadmaps and customer relations. Here's what the former CEO had to say:

The disputes between China and the United States are not based on facts or data or any information, but on ideology. The outside world has different opinions on the chip war between China and the United States, but we are a company and must take care of our shareholders. Profit. If ideology alone can hinder business, I cannot agree.

- Peter Wen, Former CEO of ASML via Commercial Times

ASML has played a huge role in the Chinese markets, as the nation is the second largest customer of the Dutch firm, which shows how important ASML is for China. When the US sanctions came into effect, ASML was restricted from providing high-end EUV lithography equipment to China, so the firm remained behind in the semiconductor race, while companies such as TSMC and Samsung have already come up with EUV lithography processes.

The semiconductor firm's former CEO believes that striking a balance between the US and China is difficult since both countries are important business partners. With the US restrictions, ASML hasn't been able to do business with China, and the firm is finding a difficult time consoling both stakeholders to maintain its relations with both countries.

Apart from that, ASML's current CEO, Christophe Fouquet, disclosed in a statement to Germany's Handelsblatt newspaper (via Reuters) that the firm is experiencing massive demand for "simpler, long-known technologies," a segment in which Chinese firms have started to become proficient more than ever. Christophe said that rather than establishing production lines, it's more feasible to acquire such chips from China, but given the regional conditions, this isn't possible at all.

ASML is in a spot where the firm cannot incline towards a particular nation, unlike TSMC and Intel, so it needs to act in a way that allows it to do business with both the US and China. The race is more competitive than ever, and with the countries engaged in a semiconductor "cold war," developments are taking place rapidly.