A TrendForce analysis released December 23, 2025, highlighted ASML’s critical role in the semiconductor industry. The firm dominates Extreme Ultraviolet (EUV) lithography. The report identifies ASML’s technology as the primary bottleneck in China’s efforts toward semiconductor self-sufficiency.
The main barrier for competitors is not merely replicating the complex EUV equipment. The challenge lies in overcoming ASML’s established global supply chain, which includes key partners like Zeiss for optics and Cymer for laser sources. Furthermore, competitors must contend with the vast amount of high-volume manufacturing data ASML accumulated over three decades.
In response, China is reportedly shifting its strategy. The country is moving from large-scale investments toward more targeted, purpose-driven funding. China is also exploring alternative paths to advance its semiconductor industry, focusing on 3D ICs and heterogeneous integration to potentially leapfrog traditional technological scaling.