ASML, the Dutch manufacturer of essential lithography equipment for the semiconductor industry, reported that it sold 'absolutely nothing' in Europe for the year 2026. This figure follows a period of minimal activity, with only two known orders in 2024 and three in 2025. While the company remains a cornerstone of the global chip supply chain, its lack of recent European sales suggests a significant cooling of domestic demand for the high-end machinery required to manufacture advanced microchips.
One primary reason for this trend is the technological focus of current European projects. Many ongoing fab projects in the region are geared toward 'mature' tools rather than the advanced Extreme Ultraviolet (EUV) or High-NA EUV lithography scanners that represent ASML's most sophisticated and high-value equipment. Because these mature tools cost considerably less, they do not drive the same level of high-value sales as the leading-edge scanners required for the most advanced silicon. This suggests that while Europe may be building manufacturing capacity, it is not currently investing in the infrastructure necessary to produce the most advanced chips on the continent.
Beyond technology, structural and regulatory barriers appear to be deterring the construction of domestic semiconductor fabs. Semiconductor manufacturing is an energy-intensive process involving hazardous chemicals and complex process changes—factors that are often slowed or deterred by European regulations. Furthermore, high energy costs and instances of energy rationing in countries like the Netherlands and Denmark create a difficult environment for the massive power requirements of modern fabs. While the United States has utilized massive subsidies like the CHIPS Act to incentivize domestic production, Europe faces a more fragmented investment landscape, potentially leading to a future where the continent serves as a manufacturing hub for mature products while losing the ability to produce sophisticated chips entirely within its borders.