ASML Shrugs Off AI Cost Concerns, Posts Strong Q4 Results
Amsterdam – ASML Holding NV’s Chief Executive Officer Christophe Fouquet dismissed concerns over the impact of lower-cost artificial intelligence models on the company’s chipmaking machine demand. Speaking at a press conference on Wednesday, Fouquet welcomed cost reductions in AI development, asserting that they would ultimately benefit ASML.
“Anyone that lowers cost is good news for ASML,” he stated. “Lower cost means AI can be used in more applications, and more applications mean more chips.”
His remarks came as the Dutch lithography machine manufacturer announced a robust fourth-quarter performance, driven by the ongoing AI boom. The company reported orders more than twice the number analysts had anticipated, reinforcing its position as a key player in the semiconductor industry.
ASML shares surged as much as 12% to €722.10 in Amsterdam, marking their most significant intraday gain since March 2020. This rally erased a €19 billion ($19.8 billion) loss in market value suffered earlier in the week, following concerns over the disruptive potential of Chinese startup DeepSeek’s new AI model. The model reportedly offers performance comparable to Western chatbots at a fraction of the cost.
Despite this development, ASML remains optimistic about its long-term prospects. “We are still very bullish,” Fouquet affirmed. “This is such an opportunity that we can expect more and more players.”
ASML’s position remains secure due to geopolitical constraints that prevent China from accessing its most advanced chipmaking equipment. The United States has implemented strict export bans on cutting-edge semiconductor technology to slow China’s AI advancements. As a result, ASML has never been permitted to sell its extreme ultraviolet (EUV) lithography machines to Chinese firms. In 2023, the Dutch government extended these restrictions, also blocking the sale of immersion deep ultraviolet (DUV) lithography systems under pressure from the Biden administration.
DeepSeek’s rapid progress has raised speculation that Chinese engineers are circumventing these limitations by focusing on efficiency gains rather than access to high-end hardware. Nonetheless, ASML executives remain unfazed.
“If you make it cheaper, more accessible, and more energy efficient, it can lead to a democratization of AI, which is necessary for it to become widespread,” ASML’s Chief Financial Officer Roger Dassen said during the press conference.
As AI adoption continues to expand, ASML expects sustained demand for its lithography systems, reinforcing its pivotal role in the global semiconductor industry.