The Head of ASML, Who Developed the World's Only 'Super Eul' Technology, Leaves After 10 Years

CEO Peter Beningk Steps Down
Stock Price Surges 1300% During Tenure

CEO Pienaar Benningk
Photo by Yonhap News

Peter Wennink, CEO of ASML, the world's only manufacturer of extreme ultraviolet (EUV) lithography equipment, stepped down on the 24th (local time) after 10 years in office.

During his tenure, CEO Peter Wennink was credited with making ASML the most valuable technology company in Europe. This was because in 2016, ASML succeeded in developing the world's first EUV lithography equipment essential for advanced semiconductor production. Although semiconductor equipment companies are inherently in a 'subordinate position' where they must generate sales through orders from semiconductor manufacturers, ASML became known as the industry's 'super subordinate' for this reason.

Major semiconductor companies such as Samsung Electronics and TSMC court ASML to obtain EUV equipment. The EUV equipment, boasting a size comparable to a bus, is expensive, exceeding 200 million dollars per unit, but during supply shortages, customers must wait their turn.

During CEO Wennink's tenure, ASML's stock price soared by as much as 1300%. Mark Rutte, the Prime Minister of the Netherlands, also awarded CEO Wennink an honorary medal earlier this month in recognition of his contributions to Dutch society.

The growth trajectory that CEO Wennink led ASML on made the company a key allied firm that the United States must absolutely protect amid the US-China competition for advanced technology supremacy. The US pressured the Dutch government to ban exports of ASML's EUV lithography equipment to China in 2022, and further imposed restrictions this year on exports of deep ultraviolet (DUV) lithography equipment used for general semiconductor production.

While CEO Wennink supported the US stance, he also expressed concerns, saying, “The more the US pressures China, the more China will double its production efforts,” and “Export controls on China will ironically help China successfully develop advanced semiconductor manufacturing equipment.” Since China accounts for more than half of ASML's sales, it was analyzed that he subtly expressed dissatisfaction that export controls could pressure ASML's performance.

These concerns have become reality. ASML's first-quarter sales this year fell 27% compared to the fourth quarter of last year, and net profit during the same period plunged 40%. ASML expects that 15% of its sales to China this year will be affected by export control measures. However, Bloomberg News assessed, “Nevertheless, China will not be able to replace ASML's advanced semiconductor equipment.”

Last month, CEO Wennink made a bombshell remark toward the Dutch government and political circles, saying he might “leave the Netherlands” in criticism of anti-immigration policies. This was the reason behind the hurried announcement of infrastructure improvement measures involving an emergency budget of 2.5 billion euros, called the ‘Beethoven Operation.’ In his retirement interview released through Management Scope, CEO Wennink reflected, “ASML was truly a Dutch company.”