"Overcapacity" is the recent buzzword from Western governments trying to criticize China's manufacturing policies, arguing that China is producing more than it can consume, and dumping the surplus in foreign markets. Officials apply the term to Chinese EVs, solar panels, and increasingly the "mature" chips used in everything from cars to consumer electronics.
Christophe Fouquet, the CEO of Dutch semiconductor company ASML, has a different view. In an interview with German business outlet Handelsblatt, published Monday, Fouquet argued the world needs the legacy chips coming out of China. Demand for these components is rising, but chipmakers are loath to expand production due to their slim margins.
