ASML CEO sees DeepSeek as "good news" for semiconductor producers

The Hague [Netherlands], January 30: The head of Dutch semiconductor equipment manufacturer ASML welcomed the rise of Chinese artificial intelligence (AI) startup DeepSeek on Wednesday, emphasizing that any technology reducing AI costs will ultimately benefit ASML in the long run.
Speaking at a press conference on ASML's 2024 financial results, CEO Christophe Fouquet underscored that the continued expansion of AI depends on lowering costs and energy consumption, which are two critical challenges facing the industry.
"Lowering cost has always contributed to more volume," Fouquet said, linking this principle to Moore's Law, the long-standing driver of semiconductor advancements.
He argued that AI cost reductions would enable broader AI adoption across industries, increasing demand for semiconductors.
"Anyone that lowers cost is, in fact, good news for ASML because lower cost means AI can be used in more applications. More applications mean more chips. And we are in the business of providing equipment to people who make chips," he said.
Fouquet acknowledged that AI presents a massive opportunity, drawing intense competition, particularly in software development. He predicted that more disruptive technologies would emerge, fueling debates about their impact but ultimately driving innovation and cost reductions that would expand the market.
Fouquet noted that AI chip demand remain currently concentrated in hyperscale computing, with relatively small chip volumes. For AI to reach its full potential, it must transition from research-driven models to mainstream applications in smartphones, cars, industrial automation, and robotics.
"If you want to have an AI chip on your phone, the cost has to be a fraction of what hyperscalers can afford today," he explained. "When this happens, likely in the latter half of this decade, AI will truly drive volume."
He stressed that without cost reductions, AI chips would remain niche products, limiting overall demand.
While acknowledging uncertainties around the timing and nature of AI's expansion, Fouquet reaffirmed ASML's long-term outlook: as AI becomes more affordable and ubiquitous, chip demand will grow, reinforcing the company's crucial role in the semiconductor supply chain.
ASML shares surged more than 5 percent on Wednesday following the release of stronger-than-expected 2024 financial results, rebounding followed a plunge in the company's market value on Monday, as DeepSeek's AI technology sent ripples through the semiconductor market.
Global chip stocks also fell on Monday amid concerns that DeepSeek's technology could rival models from leading Western AI firms, such as OpenAI, at a significantly lower cost.
Source: Xinhua News Agency