ASML Holding(US:ASML) Sou Hu Cai Jing·2026-02-07 11:46Core Viewpoint - The article discusses the surprising decision by ASML to lay off employees primarily in its Dutch and American divisions while retaining its Chinese workforce, despite a significant drop in revenue share from the Chinese market [1][4][7]. Group 1: Layoff Decisions - ASML's layoffs of 1,700 employees occurred at a time of record orders, indicating a strategic restructuring rather than a simple downsizing [1][10]. - The layoffs are concentrated in the Netherlands and the U.S., while the Chinese division remains largely unaffected, contradicting the expectation that cuts would start in the region facing political and market risks [4][7]. - The decision reflects a focus on retaining roles that are critical to operational efficiency and cash flow generation, rather than merely reducing headcount [10][16]. Group 2: Market Dynamics - The revenue share from the Chinese market has decreased from over 30% to approximately 20%, yet this segment is characterized by stable, long-term service contracts rather than volatile advanced process competition [7][18]. - The Chinese division's workforce is primarily composed of essential roles such as field engineers and support teams, which are crucial for maintaining operational continuity and customer contracts [14][18]. - ASML's management prioritizes roles that directly contribute to cash flow and operational efficiency, leading to the conclusion that the Chinese market is not being "protected" but is instead vital for the company's financial health [16][20]. Group 3: Strategic Implications - The layoffs highlight a broader trend in the semiconductor industry where efficiency and the ability to generate stable cash flow are paramount, especially in uncertain market conditions [10][20]. - The article suggests that the narrative of "decoupling" in global supply chains may need to be reassessed as companies prioritize operational effectiveness over ideological considerations [20].