AMSTERDAM, November 16, 2025 – The CEO of Dutch semiconductor equipment giant ASML, Christophe Fouquet, has reassured investors and industry watchers that ongoing political tensions between The Netherlands and China have not affected the company’s operations. Speaking in a recent Dutch television interview, Fouquet emphasized that the company remains resilient despite concerns surrounding the Dutch government’s recent takeover of chipmaker Nexperia.

Strong Q4 Performance Amid Geopolitical Concerns

ASML, a global leader in advanced semiconductor lithography systems, recently released its fourth-quarter earnings in Veldhoven. The results come at a time when the global chip industry is facing market fluctuations, partially driven by rapid developments in artificial intelligence (AI) technology in China. Notably, Chinese AI firm DeepSeek has made efficiency improvements in chip usage, prompting speculation that demand for high-end chips could be affected.

Despite these concerns, Fouquet stated:

“It will not affect our business in the short term. I believe the worst of the crisis is over.”

This statement underscores ASML’s strong market position and its ability to navigate geopolitical uncertainties while continuing to supply critical equipment to chip manufacturers worldwide.

Background: Dutch Seizure of Nexperia and China Relations

The tension stems from the Dutch government’s seizure of the European operations of Nexperia, a company partially owned by Chinese investors. The government’s move was motivated by concerns over technology transfer and the potential risk to Europe’s semiconductor ecosystem. The seizure disrupted the supply of chips, which are essential for sectors such as the global automotive industry.

Fouquet emphasized the importance of diplomacy, noting that:

“What is key on this topic is to talk before you escalate, and maybe this time it went the other way around.”

In line with this approach, a Dutch delegation is scheduled to travel to China next week to engage in further discussions and ensure that trade relations remain stable.

Market Implications for ASML and the Semiconductor Industry

ASML’s reassurance comes at a critical time for the semiconductor market, which has faced volatility due to geopolitical tensions, supply chain disruptions, and shifts in AI-driven demand. As one of the few companies capable of producing extreme ultraviolet (EUV) lithography machines, ASML occupies a unique and strategic position in the global chip supply chain.

Investors and analysts are watching closely, as the resolution of Dutch-China discussions could influence chip availability, technology transfer policies, and the future growth trajectory of companies reliant on advanced semiconductor equipment.

Looking Ahead

While political tensions may pose challenges for the broader industry, ASML’s robust Q4 performance and Fouquet’s optimistic outlook suggest that the company is well-positioned to weather short-term geopolitical risks. As semiconductor technology continues to evolve, particularly in AI and automotive applications, ASML’s role as a critical chip equipment supplier remains crucial.