The European Union is stifling artificial intelligence innovation and pushing tech companies out of the region with burdensome rules, warned Christophe Fouquet, CEO of ASML.
As the head of Europe’s most valuable tech company, Fouquet noted that the bloc’s restrictive regulatory approach is out of touch with actual industry needs. ASML, valued at 515 billion euros and based in the Netherlands, manufactures the highly advanced lithography machines required to print the world’s most sophisticated microchips. These chips power everything from smartphones and data centers to the complex AI models currently transforming the global economy.
A Growing Rift Over the AI Act
In an exclusive interview, Fouquet highlighted a growing divide between Brussels policymakers and major industrial leaders. He specifically criticized the EU’s landmark AI Act, pointing out that European authorities are imposing strict boundaries before local companies have even had a chance to build competitive products.
”We didn’t start running, we didn’t start even walking, and we already had in front of us all the obstacles to not be able to make even the first step,” Fouquet stated, adding that this approach does not serve the industry.
The disconnect is highly visible in ASML’s own commercial data. An astonishing 99 percent of the company’s machine sales currently come from outside of Europe.
This warning follows a joint letter sent to European Commission President Ursula von der Leyen by a coalition of Europe’s largest industrial giants, including ASML, Airbus, Ericsson, Nokia, and Siemens. The companies collectively warned that over-regulation risks permanently hobbling European firms in the face of intense competition from American and Chinese rivals.
The Problem with Subsidizing Supply Without Demand
While EU policymakers recently introduced an “omnibus” simplification package to ease some rules for industrial AI applications, Fouquet dismissed the logic of creating overly complex legislation just to scale it back later. Instead, he urged Brussels to collaborate directly with businesses when drafting industry frameworks.
Fouquet also cautioned against the EU’s upcoming tech sovereignty package, which aims to build up domestic data centers and microchip factories. He argued that spending massive amounts of public subsidies on manufacturing plants is pointless without first stimulating local market demand for AI applications and cloud infrastructure.
As an example, he pointed to Intel’s collapsed project to build an advanced chip factory in Germany. Fouquet noted that because Europe currently lacks a robust ecosystem of companies utilizing ultra-advanced chips, any wafers produced by such a factory would simply end up being exported to the United States.
In response to the criticism, European Commission spokesperson Thomas Regnier defended the legislation, stating that the AI Act ultimately fosters investment by increasing consumer and industry trust. He emphasized that the recently updated rules offer clearer timelines and a more innovation-friendly environment for European tech companies.