ASML CEO dismisses EU chip goal as ‘totally unrealistic’

The European Union's ambitious goal of achieving a 20% world market share for European chip producers by 2030 is being deemed "totally unrealistic" by ASML CEO Peter Wennink. While investments in fabs by companies like TSMC, Bosch, NXP, and Infineon are beneficial for the European car industry, Wennink believes they are not sufficient to reach the desired market share. He emphasizes the need to calculate the amount of investment required to achieve this goal.

In 2022, NXP CEO Kurt Sievers stated that an estimated €500 billion investment would be necessary in Europe to reach the 20% market share target. This highlights the magnitude of the challenge faced by European chip producers in catching up with global competitors.

According to SEMI, a global industry association, China is projected to have a capacity of 8.6 million 8-inch equivalent wafer per month (wpm) this year. Taiwan, Korea, Japan, the USA, Europe, and Southeast Asia are expected to have capacities of 5.7 million wpm, 5.1 million wpm, 4.7 million wpm, 3.1 million wpm, 2.7 million wpm, and 1.7 million wpm, respectively. These figures indicate that Europe currently holds approximately 8% of the industry's capacity and market value.

To increase Europe's market share to 20% by 2030, in a landscape where capacity is growing at a rate of about 6% per year, it would require the construction and full volume production of approximately a dozen new fabs. This demonstrates the scale of the investment and effort needed to achieve the EU's ambitious target.

The Chips Act, with its goal of a 20% market share for European chip producers, is undoubtedly challenging. However, it also presents an opportunity for Europe to strengthen its position in the global semiconductor industry. With strategic investments, collaborations, and supportive policies, European chip producers can strive towards a more significant market share and contribute to the region's technological advancement and economic growth.