Trumpf seeks cost reductions for EUV power supplies in Poland, not Asia - Bits&Chips

Trumpf's decision to anchor EUV power supply production in Poland rather than Asia is a structural signal, not a cost footnote. Technically, the power module's impedance profile and transient response govern tin-droplet plasma excitation efficiency—the single most power-dense subsystem in the lithography chain. This accelerates a European closed loop in ASML's core stack, progressively decoupling critical nodes from East Asian manufacturing. On compliance, the EU Chips Act subsidy framework and tightening export controls create dual tailwinds. Poland offers EU market access, labor costs roughly one-third of Germany's, and NATO alignment—optimal friend-shoring. Yet the hidden risk persists: high-power IGBTs and SiC devices upstream still depend on suppliers in Taiwan, China and Japan. Europeanization here is a geographic shift of assembly, not genuine closure of exposure. Competitively, Coherent and IPG continue pressuring Trumpf in ultrafast laser, while ASML evaluates vertical integration of power design. Trumpf's real play is locking long-term contract share during ASML's expanding bargaining power, using European identity as the moat. Within 18 months, expect ASML to mandate EU-based capacity certification from more Tier-2 suppliers. Non-Asian share in EUV BOMs could jump from under 30% to over 50%. The cost premium will flow through to fabs and be absorbed by global chip pricing.