Christophe Fouquet, who assumed the role of Chief Executive Officer at ASML Holding in 2024 following more than a decade with the Netherlands-based semiconductor equipment manufacturer, expressed confidence in the company’s competitive position during remarks at the Milken Institute Global Conference in Beverly Hills this week. Speaking on the strength of ASML’s market position in extreme ultraviolet (EUV) lithography technology, Fouquet suggested that the company faces no credible near-term competition capable of displacing its dominance in the critical machinery used to manufacture advanced semiconductor chips.
ASML’s control over EUV lithography represents one of the most significant technological moats in the global semiconductor supply chain. The company’s machines, which cost upwards of $120 million per unit, are essential for producing the most advanced processor chips used in everything from artificial intelligence systems to consumer electronics. No other manufacturer currently produces EUV lithography equipment at commercial scale, a situation that has persisted for nearly two decades despite enormous research investments by competitors including Canon and Nikon of Japan.
Fouquet’s comments reflect the structural reality of ASML’s market position: the technical barriers to entry are extraordinarily high, requiring expertise across multiple disciplines including optics, software, precision engineering, and materials science. The company’s dominance has deepened over the past five years as semiconductor manufacturers have raced to develop chips using smaller nanometer nodes, rendering older lithography equipment obsolete. Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, and Intel all depend almost exclusively on ASML equipment for their most advanced production lines, creating a single point of dependency within the global semiconductor ecosystem.
The company’s market position has attracted regulatory scrutiny in multiple jurisdictions, particularly in the United States, where policymakers have grown concerned about the reliance on Dutch technology for advanced chip production. The U.S. government has implemented export restrictions limiting ASML’s ability to sell certain advanced systems to China, citing national security considerations. The European Union has similarly begun examining whether ASML’s market dominance creates strategic vulnerabilities for European semiconductor independence, though no enforcement actions have been initiated.
Competitors and alternative technology developers continue to pursue different approaches to advanced chip manufacturing. Companies exploring immersion lithography improvements, extreme ultraviolet alternatives, and next-generation technologies such as electron beam lithography represent potential long-term challenges. However, Fouquet’s assessment that “no one is coming for us” reflects the consensus among industry analysts that any viable competitor would require five to ten years and billions of euros in research investment before presenting a meaningful commercial threat. The technical complexity and capital requirements have proven sufficiently daunting that even well-capitalized Japanese and South Korean manufacturers have essentially abandoned their EUV development programs.
ASML’s financial performance underscores its market dominance. The company reported revenue of approximately €27 billion in 2025, with gross margins exceeding 50 percent on lithography systems. Its customer base remains concentrated among three primary manufacturers—TSMC, Samsung, and Intel—creating both strategic advantage and concentration risk. Supply chain constraints following the global pandemic accelerated demand for ASML systems as semiconductor manufacturers rushed to expand capacity, though demand patterns have begun to normalize as the industry addresses previous overcapacity.
Looking forward, ASML’s competitive position appears structurally secure in the near to medium term, though several dynamics warrant monitoring. China’s determined efforts to develop indigenous semiconductor equipment manufacturing capabilities, supported by substantial government investment, could eventually produce alternatives to ASML technology, though credible analysts place such breakthroughs a decade or more away. Regulatory pressure from multiple governments could impose new constraints on ASML’s business model, particularly regarding sales to China. Additionally, the semiconductor industry’s potential shift toward chiplet architecture and heterogeneous integration might reduce the absolute demand for the most advanced lithography equipment, though ASML would likely benefit from increased overall chip complexity regardless. The company’s monopoly position, while commercially advantageous today, may face more significant structural challenges within the next 10-15 years as competing technologies mature and geopolitical pressures reshape global semiconductor supply chains.
