ASML's new CEO Fukai took office, and public opinion paid attention to its attitude towards China

Observer.com

2024-04-25 16:27Posted on the official account of Shanghai Observer.com

(Observer News)

Dutch lithography giant ASML (ASML) ushered in a new helm on the 24th, and Christoph Fouquet, the former executive vice president and chief commercial officer (CFO), succeeded Peter Wennink as the new president and chief executive officer (CEO). There is widespread concern about how ASML will handle its business in China at a time when semiconductors have become a geopolitical battleground, which AFP believes will also be Fuquet's "top priority".

Originally from France, the 50-year-old holds a master's degree in physics from the Ecole Polytechnique de Grad in France, and joined ASML in 2008 after working for US semiconductor equipment manufacturer KLA-Tencor and Applied Materials, where he held various positions in marketing and product management. Former CEO Wennink described Fuquet as a "well-known figure" at the company, familiar with all aspects of the business and customers, and has been responsible for the core project of extreme ultraviolet (EUV) lithography for many years.

AFP bluntly said on the 24th that Fukai will face a lot of tricky to-do lists, and how to deal with business with China in the context of US-China trade frictions is the "top priority". The European edition of the "Politico" news network also said that the question of whether its semiconductor manufacturing equipment exports to China will be further restricted will dominate its agenda. "Fouquet will have to navigate choppy political waters as Western powers, led by the United States, want to limit China's access to such technologies. ”

On November 30, 2023, Fuquet (left) and Wennink (right) were interviewed about the appointment of the new CEO Image source: ASML website

Agence France-Presse, citing an analysis by Dutch technology media outlet "Bits&Chips", said that as the second Frenchman to take the helm of the company, Fouquet's French citizenship will be a "double-edged sword": while he may be at a disadvantage when dealing with Dutch politicians, "his French roots may be helpful in the international arena where geopolitical storms are raging", " France represents a proud and confident Europe, so when it comes to US interference such as containment of export controls, the new CEO of ASML will surely find the French president on his side."

In the eyes of analysts, ASML's appointment to Fuquet represents continuity within the company, which itself is involved in shaping and planning the current strategy of Europe's largest technology company. The European edition of the "Politico" news network mentions that before Fuquet took office, ASML had been quietly recruiting people who were well-versed in politics. Heimskeck, who became ASML's head of global public affairs in February, is a former deputy minister of the Dutch Ministry of Economy and secretary general of the European Industry Roundtable (ERT).

Will ASML's business in China change after the change? After announcing the new CEO in November last year, Fuquet himself was asked about this issue at a media conversation, but only stressed that it would continue the company's current strategy. According to the transcript of the dialogue released by ASML, Fukai said at the time that the Chinese market is very vast, and stressed that it is very difficult for the chip industry to decouple between different regions.

He had previously said in an interview with Nikkei Asia that decoupling the semiconductor supply chain was "extremely difficult and extremely expensive". "Sooner or later, people will realize that success in the semiconductor industry is only possible through collaboration. The idea of going back to a dark corner and doing everything on your own can be very challenging. The statement was seen as a "warning message" to politicians.

In a joint interview with Wennink after the new CEO was confirmed, Fuquet stressed that he and Wennink share "core values". It is worth mentioning that Wennink has recently expressed his opposition to the implementation of export controls by the United States, believing that it will be counterproductive. The more the U.S. puts pressure on China, he said, the more likely it is that China will "redouble its efforts" to build lithography equipment that rivals ASML.

ASML's first-quarter earnings report, released earlier this month, showed that in the reporting period, the company achieved net sales of 5.3 billion euros, gross margin of 51%, and net profit of 1.2 billion euros. It is worth noting that the company's business data in China is still bright. In the fourth quarter of last year and the first quarter of this year, ASML's net system sales in China accounted for 39% and 49%, respectively.

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