ASML reports zero European sales in Q2 amid lack of local chip plant investment

ASML, the Dutch semiconductor equipment giant, reported that its net sales from the European region dropped to 0% in the second quarter of this year. Company officials attribute this decline to a lack of investment in new wafer fabrication plants within Europe, despite the implementation of the European Chips Act intended to double the region's market share by 2030.

While the United States, China, and India are aggressively incentivizing semiconductor manufacturing to attract ASML's critical lithography technology, Europe faces a stagnation in actual construction projects. Currently, ASML's primary markets remain in Asia, specifically South Korea, Taiwan, and China, with growing interest from India.

ASML CEO Christophe Fouquet has also issued a warning to European and Dutch policymakers regarding trade restrictions on China. He cautioned that excessive export controls could backfire by creating “desperation,” which may ultimately accelerate China's drive to develop its own independent technological capabilities and become a stronger competitor.