Speaking ahead of his appearance at the Milken Institute Global Conference this week, ASML CEO Christophe Fouquet dismissed growing concerns about rivals and Chinese reverse-engineering efforts, declaring that no EUV lithography system has ever been shipped to China and that the company tracks every machine it sells.
“Not a Single EUV System in China”
In an interview with TechCrunch on Tuesday from a Beverly Hills hotel rooftop, Fouquet addressed reports that former ASML engineers in China may have partially reverse-engineered the company’s technology. “For reverse engineering to occur, the machine itself must first be available. There is not a single EUV system in China — we have never shipped tools there,” Fouquet said. “All equipment we send is traceable: it is either in operation with clients or has been dismantled and returned to us.”
On the San Francisco-based startup Substrate, which has raised over $100 million with backing from Peter Thiel’s fund and claims it can build a competitive lithography machine, Fouquet was measured but skeptical. “The first EUV image we observed was three decades ago, and it took another 20 years of dedicated effort to develop it into a production-ready system,” he said.
Endorsing a “Generational Gap” Strategy
Fouquet endorsed the export philosophy articulated by Nvidia CEO Jensen Huang, who has argued that companies should sell globally while keeping the most advanced technology restricted. “He noted — and Nvidia exemplifies this: maintaining technological leadership can be achieved by preserving a generational gap in sales,” Fouquet said. He noted that ASML currently ships tools to China that were first launched in 2015, representing a two-to-three generation lag compared to Nvidia’s roughly eight-generation gap.
The comments come as the U.S. House Foreign Affairs Committee advanced the MATCH Act in late April, which would require the Netherlands and Japan to align chip equipment export restrictions with American rules within 150 days or face unilateral enforcement — potentially cutting off ASML’s remaining DUV sales to China.
Supply Constraints for Years to Come
Fouquet warned that global chip supply will remain constrained for years due to surging AI-driven demand. “If you consult hyperscalers, they will indicate that in the next two to three, possibly even five years, they will not acquire sufficient chips,” he said. In April, ASML raised its 2026 revenue forecast to between €36 billion and €40 billion, citing AI-related infrastructure investment by major tech firms. The company plans to ship 60 low-NA EUV tools in 2026, a 25% increase over the prior year.
ASML’s position as the sole manufacturer of EUV lithography machines — which cost between $200 million and $400 million each and are comparable in size to a school bus — has made it the most valuable company in Europe.
