TAIPEI, May 23, 2024
/PRNewswire/ -- In an exclusive video interview with
DIGITIMES Asia managing editor Judy
Lin (JL), Marc Hijink (MH), the acclaimed Dutch journalist
and author of "Focus - the ASML Way," during his visit to
Taipei, Taiwan, delves into the
intricate world of ASML, a global leader in semiconductor
lithography machines.
Reflecting on his immersive experience embedded within ASML,
Hijink shares insights into the company's resilience amid
geopolitical tensions, its strategic focus on innovation, and the
human factors driving its success. As ASML grapples with export
controls and expands its presence in Asia, the interview offers a glimpse into the
challenges and triumphs shaping the semiconductor industry's
future.
Marc is joining TechInsights Vice Chair G. Dan Hutcheson in the latest GeoWatch Video
Series "Decoding Excellence: ASML's Evolution Towards Leadership
and Beyond" to be broadcasted on DIGITIMES' YouTube channel at
09:30 a.m. Taipei time on
May 16.
JL: Marc, would you like to give a self-introduction and
tell us what inspired you to write this book?
MH: Of course, thanks for having me here. I am Marc
Hijink, a Dutch newspaper reporter. I've written a book about ASML,
and it's my second time in Taipei.
I already love it here. So I fell in love with the country of
Taiwan on day one. For this
book, Focus, the ASML way, I've been embedded in the
company for quite a couple of years. Before that, I was writing
about the company ASML as a financial reporter, diving into
technology.
After a certain period, I think it was during Corona (COVID-19)
that I asked them if I could follow the company on background, just
behind the scenes, to see how they were doing with all the troubles
in the supply chain as all the world had to manage the
shortages.
It was exactly during the pandemic, that the chip shortage hit.
During the height of geopolitical tensions, ASML was on the front
page of every newspaper. So for me, it's like a perfect fit, I
could delve into the company, and also experience how they were
dealing with these gigantic pressures from the outside.
After that one year, I wrote an extensive article for NRC. Then
the book publisher tapped me on the shoulder and said, "Hey, isn't
there a book in it?" I went back to ASML and said, "Well, there's
this interest from the outside world, I think you have a great
story to tell, let me write it and also allow me to gather other
sources like third or even fourth sources. So I can just do the
reporter thing and verify if everything is correct." They granted
me the opportunity, which I'm still grateful for. So I got a long,
objective panoramic view of the company. They never interfered in
the things I could write or could not write. I got the opportunity
to travel all around the world and see their certain divisions and
go into the clean rooms, go into the boardrooms, and meet with
their leadership several times. These are great stories to
tell.
JL: Wow, what a dream job that you got.
MH: Yeah. It is a nightmare if you compare it to the
deadlines I had to make, but okay, I managed. Yes.
JL: So are there any unforgettable experiences during this
process?
MH: Well, I have a few pictures in my head, I could
share. They're also in the book. So one of these moments these
scenes is in Obercochen, which is a very small country village in a
mountain in Germany. Obercochen is
the headquarters of Zeiss, which is the supplier that kind of
develops the most important component of the lithography machine,
which is the machine that ASML makes. It's like a giant copier. It
has a light source like a flashlight, but also lenses, and Zeiss
builds these very complex lenses.
At the Zeiss lab, I saw what looked like giant canisters a
couple of meters high and they seemed to be like cut-in-half
submarines and that's where they recreate a vacuum to measure the
mirrors inside the lithography machine.
These mirrors are so extremely flat that if you would point out
I think a laser beam on it, and we aim it at the moon, you could
hit a golf ball with it. So it's extremely flat to the last
atom.
You step into this James Bond
scene, and there you see what technology is needed to build a chip
that will end up in a phone or an AI chip in about five or six
years. It's like crazy.
JL: ASML is often seen as a national jewel of the Netherlands, yet there was a time when it
was on the brink of failure. What were the factors that helped it
turn around its fate?
MH: Well, you're right. ASML had a very rough start
about 40 years ago, they were on the brink of collapse practically
every couple of years because there were huge downturns in the chip
manufacturing industry. ASML as a starting company had a rough
time. But they were lucky, a couple of times lucky enough to
survive, and they combined it with focus. They're a one-trick pony.
So they concentrated all of their energy and innovative power on
lithography machines. When they start focusing on the long term,
their investments have been immense throughout the company's
history.
Even during downtime at terms, ASML kept its R&D up on a
level that far exceeded competitors. So they were investing more,
and that kind of helped them innovate for future generations.
I think that focus is also something that was on their customer.
So they only have a couple of customers, I think five or six that
are important. They found it so important to deliver these machines
on time, and always get the deadline.
So they built machines that weren't even perfect, that weren't
working properly yet. It is even so with the newest generation,
it's called High-NA, I think it's the most advanced machine that
this earth has ever seen. Even though it is not working properly,
they do sell it already, and they ship it already. Together with
the customers, they start tweaking the system.
This creates a kind of cooperation and bond between ASML and its
customers. If you look at the numbers, it's somewhat crazy to buy a
machine for such an amount of money that you don't even know if it
will work in the end. However, ASML has gotten more and more
experienced. So the focus on the customer is also very
important.
The funny thing about being so focused as a company is that it
also tends to lose sight of things that happen outside of focus. As
a journalist, it's always fun to see that even a high-tech company
like ASML occasionally drops the ball on other subjects.
JL: Yes, it's fascinating to read your book and find out that
ASML works very closely with its customers. Considering the
geopolitical tensions affecting the global tech industry. What are
the challenges ASML is facing to maintain its leadership,
especially, you know, the US is restricting the export of
lithography machines to China?
MH: Yeah, well, of course, the export controls
affect not only ASML as a market leader but also its Japanese
competitors, like Nikon and Canon. So all the lithography machine
makers are affected by these measures. If you look back at the
history of ASML, the company grew just after the Cold War ended,
which was in 1989, so quite some years ago, and which made it
easier because the rules were far, far more relaxed.
So ASML, traditionally, wasn't very much impressed by politics,
they thought it was a fuss. They focus on the technology and forget
about the politics. Yet, well, times have changed. ASML has to grow
up.
But for the company, it's tough that it's based in a small
country – the Netherlands, which
is not a geopolitical superpower, like the US or China. So it has to defend its sovereignty
against these huge countries. For ASML, that's kind of hard to
understand that a company that's so important for the ecosystem of
the rest of the world is depending on a relatively small
government. So they aim to turn this into a European thing because
Europe in itself is a superpower,
but the export control things are all determined locally.
In my book, my thesis is that ASML should be regarded as a
European company because it outgrew the
Netherlands. If you look at the history of ASML, the company
started with a lot of European funding. For example, in the
development of EUV, there was a European fund involved. So if you
look back at history, at this moment in time, you would say ASML is
a European company.
JL: Interesting. The Dutch government understands how
important ASML is. So right now they have this project Beethoven
that was aimed at retaining ASML. So how successful do you think
they are doing right now?
MH: Well, well, let's start with this name
Beethoven. It was like a secret code name. There wasn't any reason
to choose a composer's name for that. But I think it has to do with
Veldhoven, where ASML has its headquarters, which is a very small
town, in a very small country like the
Netherlands. With Eindhoven, a slightly bigger town nearby.
That's just something that the Dutch government thought that they
tried to invest more in the infrastructure, the educational
systems, and the more affordable housing in the vicinity of
Veldhoven. ASML is doubling its footprint preferably in
the Netherlands, because that's
the brain of the company.
Expanding here is kind of hard as well, especially in
the Netherlands. So it needs help
from its government, state subsidies for more roads, more technical
talent, and housing, just to give everybody a place to live, who
wants to work at ASML.
But its expansion also depends on its supply chain. About 80% of
this huge lithography machine is built by or outsourced to other
companies. Zeiss is a very important supplier, but also VDL, a
Dutch company, and lots of other companies in the region where ASML
is based. So if ASML has to double, all these other companies have
to double in size as well. The
Netherlands is having a hard time digesting all that growth.
So that's why they invented Beethoven to accommodate that.
JL: Well, actually, I think that ASML is also expanding fast
in Asia. The success of
semiconductor hubs largely depends on the ecosystem strategy, as
shown here in Taiwan as well. So
how has ASML been building its ecosystems in South Korea or Taiwan?
MH: Well, if you look at the total footprint of ASML
and think about the number of employees, half of them are based in
the Netherlands. So the other half
is based around the world, especially in Asia, the US, and also Germany. So all the places where new fabs are
popping up, ASML is also there, because it has to service its
machines.
These are machines that need 24/7 attendants, they refer to them
as their babies that need nursing, because if you don't give them
enough attention, they'll stop or malfunction, and then chip
production will halt, which is a problem. It's a massive amount of
money you have on one wafer, of course. So ASML has to be close to
these fabs. As both Taiwan and
Korea are expanding rapidly, when it comes to building new fabs, if
you look at for example, the plans that Korea just announced, I
think they're investing almost $500
billion worth of investment in the semiconductor industry,
until 2049.
So they still have a long time to invest that amount of money.
So it's doubling in size, or even tripling and ASML has to grow
accordingly. This is also the case in Taiwan. For example, for the book, I visited
Linkou, one of the facilities of ASML here in Taiwan. There, they clean the lens and the
mirrors used for these EUV machines. It's like a car wash for these
very expensive mirrors, which is very interesting. It is also
interesting to see how dense the areas are, so they have little
room to expand. Now they're going to expand in New Taipei City. And
it's a huge investment. However, ASML believes that a large part of
its future is also here in Taiwan.
JL: So based on your interactions and experiences with ASML,
what are the human factors that made the company what it is today?
How about that core value and culture there?
Well, I think ASML culture is very direct, even compared to
Dutch standards, because people from the
Netherlands are usually regarded as direct or sometimes
blunt, but at ASML even at a higher degree, if you're being too
polite, you tend to lose time.
ASML needs the lowest latency they can get to produce these
machines. So in the culture, it's also common to challenge each
other. Not only your colleagues but also your leadership. So you're
also supposed to confront the leadership with its mistakes. That's
the only way t filter out the flaws in the lithography machine bits
because it's such a complex device with hundreds of 100,000 parts,
and to build it so it will work and operate 24/7. You have to make
sure that all the errors are out, it's about managing the errors.
ASML has created this culture, this very direct culture that makes
it easier for these flaws and the best ideas to pop up. And it's
like a collective brain.
I think this is something that the company has to keep on doing,
even though it's growing so rapidly. It's easier to create a
collective mind if you're a small company, but it's now doubling in
size. So that's a challenge.
JL: Yes, I believe companies here in Taiwan have a lot to learn from ASML in
managing talent from diverse cultures and managing engineers who
know a lot more than their boss.
MH: Well, that's an interesting aspect because ASML
is trying to be a more diverse company. If you look at it
culturally, it's like a blend. It's not a purely European company,
it's not a purely Asian company. It's like a like a blend, like,
like a Bordeaux. It's like a 40%
blend of Asian, European, and American in spirit, and mixed, then
you get this ASML way.
Curious about ASML's success or the future of semiconductor
equipment industry? Tune in to DIGITIMES Asia's new GeoWatch video.
Join TechInsights' Vice Chair and Marc Hijink as they explore
industry trends and provide expert insights.
Editor's Note:
Marc Hijink is a technology reporter for NRC, a prestigious
business newspaper in the
Netherlands. His book Focus, the ASML
Way was published first in Dutch earlier this year, and
its English Kindle version is now available on Amazon.
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