One signal

ASML sold nothing to European customers in the latest quarter, according to comments by the company’s executive vice-president Frank Heemskerk reported by Silicon Republic. Europe’s share had been only 1% before that, while South Korea accounted for 43% of ASML’s quarterly sales.

Why it matters

The figures matter beyond one manufacturer. ASML makes the specialised lithography equipment used by major chipmakers including TSMC and Samsung, so weak European demand points to a wider problem for the region’s semiconductor ambitions. The European Union has targeted a 20% share of the global chip market by 2030, but an earlier EU assessment called that goal overly ambitious. Silicon Republic also reports that PwC chief economist Barbara Baarsma described the result as a demand issue and argued that governments should act as launching customers. Europe may have plans for a chip revival, but plans do not buy lithography machines. Should governments subsidise demand for strategic technology, or would that simply prop up an industry Europe has not yet built?

Discuss: Should European governments create guaranteed demand for semiconductor technology, or would that risk pouring public money into an industry that lacks a competitive base?

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