- ASML is a Dutch multinational corporation founded in 1984 and specialises in the development and manufacturing of photolithography machines which are used to produce computer chips. As of 2023, it is the largest supplier of the semiconductor industry and the sole supplier in the world of extreme ultraviolet lithography (EUV) photolithography machines.
- Christophe Fouquet was pointed as Chief Executive Officer and chairman of Europe’s largest technology company for four years on Wednesday, replacing the retiring former CEO Peter Wennink.
- Christophe Fouquet also faces a tricky balancing act in helping to steer Europe’s biggest tech company through the U.S.-China “chip wars” while maintaining the group’s lead over rivals and managing the current artificial intelligence boom. As Fouquet took over, ASML’s stock market valuation remained high, reflecting the market’s optimistic expectations, but with product launches and capacity expansions, there was a risk of disappointment.
The Dutch lithography giant ASML has announced a change of leadership, with French national Christophe Fouquet replacing Peter Wennink as its new president and chief executive. Christophe Fouquet, who will take over as CEO after 15 years at the company, will bring new changes to ASML and a new era for the company will begin.
ASML, the global semi-conductor supplier
ASML Holding N.V., commonly shortened to ASML and originally standing for Advanced Semiconductor Materials Lithography, is a Dutch multinational corporation founded in 1984. ASML specialises in the development and manufacturing of photolithography machines which are used to produce computer chips.
As of 2023, it is the largest supplier for the semiconductor industry and the sole supplier in the world of extreme ultraviolet lithography (EUV) photolithography machines that are required to manufacture the most advanced chips
ASML’s signature products are immersion lithography, DUV lithography, EUV lithography and nanoimprint lithography, which are used to compete in the global semiconductor market with competitors such as Ultratech, Canon, Nikon, MKS Instruments, and Cadence Design Systems.
As the company undergo transitions, industry trends, including AI, edge computing and the clean energy transition, are driving strong demand in a dynamic semiconductor industry. Through its advanced lithography solutions, ASML is well-positioned to support chipmakers in making smaller, faster and more energy-efficient microchips for these applications.
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Christophe Fouquet, the CEO of ASML
Christophe Fouquet, at the age of 50, took over as Chief Executive Officer and chairman of Europe’s largest technology company at ASML’s annual meeting in Veldhoven, Netherlands, on Wednesday, taking charge of a company that dominates profitability in making semiconductor equipment.
Born in 1973, Fouquet studied physics in the southeastern French city of Grenoble, which gave him the strong theoretical skills needed to run a well-known technology company like ASML. Fouquet said “I’m very happy… To write a new chapter for ASML and continue to create significant value for our shareholders.”
The ongoing CEO has been with ASML for 15 years and has extensive technical, product and customer experience. He began his career in 2008 in marketing and product management and first joined the Board of Management in 2018 as Executive Vice President of EUV technology, ASML’s top product line.
Fouquet will be appointed for four years, replacing the retiring former CEO Peter Wennink, and his appointment will undoubtedly bring new opportunities and challenges for ASML. Peter Wennink has led the company since 2014, during which time the company’s share price has risen more than tenfold and it has become Europe’s largest technology company with a market value of more than 300 billion euros ($320 billion). Wennink’s retirement coincides with the retirement of ASML’s Chief Technology Officer, Martin van den Brink.
ASML said the visionary vision of the two retiring leaders guided the company’s growth and innovation. “For the past few months, people have been telling me, ‘You’re going to retire at the peak of your company,'” Wennink said. “No. We’re not even in the middle yet.”
Fouquet e has been a key right-hand man to Wennink since 2022, serving as Vice President and Chief Commercial Officer. “Insider Christophe Fouquet is the continuity of the flesh,” said the specialist publication Bits&Chips, adding that “The Frenchman knows the company and the industry inside out.”
New path with potential pitfalls
“I know I can count on colleagues around the world to closely collaborate to further develop our technology, serve our customers and create value for all our stakeholders”, said Christophe Fouquet.
He has joined the Management Board and will work with other Management Board members, including Chief Financial Officer Roger Dassen, Chief Operating Officer Frédéric Schneider-Maunoury, Chief Strategic Procurement Officer Wayne Allan and newly appointed Chief Customer Officer Jim Koonmen. Jim’s appointment as a new member of the Board underscores the company’s focus and commitment to customers, according to ASML’s webpage.
His appointment has also led to a lot of speculation, such as whether ASML will move its headquarters out of the Netherlands to the new CEO’s home country of France. However, the current situation does not look very likely. ASML has a deep foundation and a sound research and development, production system in the Netherlands, and the Dutch government will not easily let such an important company leave.
Christophe Fouquet also faces a tricky balancing act in helping to steer Europe’s biggest tech company through the U.S.-China “chip wars” while maintaining the group’s lead over rivals and managing the current artificial intelligence boom. Export restrictions imposed by the United States and the Netherlands mean that the top half of ASML’s product range cannot be sold in China, one of its biggest markets.
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ASML’s latest quarterly results showed that China accounted for 49% of sales, but overall orders were weaker than expected, triggering a plunge in the share price. Fouquet has previously said that decoupling industry supply chains is “extremely difficult and extremely expensive.”
Fouquet must maintain ASML’s position as the main supplier of its lithography systems, which use light beams to make chip circuits, as do TSMC, Intel and Samsung. Simon Coles, ASML analyst at Barclays, told AFP “I don’t expect the direction to change. The new CEO helped shape and plan the current strategy, so we expect that to continue.”
The company has just unveiled plans to build a new factory in Eindhoven to house another 20,000 employees. The company now trades at forty times 2023’s earnings, slightly higher than other top chip equipment suppliers such as Applied Materials Inc. Amat and KLA, both of which Fouquet worked for earlier in his career.
As Fouquet took over, ASML’s stock market valuation remained high, reflecting the market’s optimistic expectations, but with product launches and capacity expansions, there was a risk of disappointment.
