China's Chip Progress: ASML CEO Weighs In

ASML, a key player in the chip industry, recently shared some interesting insights. Its CEO mentioned that China might be able to produce chips using the advanced 5nm and 3nm nodes, but only on a small scale. He explained that this would be done using older technology, which is a bit like trying to drive a sports car with an engine from an old model. With China's demand making up about a quarter of ASML's sales, the company expects this figure to drop in the coming years. Xiaomi, a Chinese tech giant, has reportedly finished designing its first 3nm chip. This is exciting news, but it's also a bit risky. There's a chance that companies like Huawei, which are under sanctions, might use this design to improve their own chips. The US is also expected to tighten its rules on selling chips to China. This means that China's purchases of lithography equipment, which hit 3. 4 billion euros in just one quarter, might slow down. ASML's problems aren't all China's fault, though. Intel and Samsung are having trouble with their own chip-making processes, which is affecting ASML's business. Intel is cutting back on spending, and Samsung is dealing with issues that are slowing down its production. All this adds up to a challenging time for ASML.