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The order lead times for new semiconductor equipment may actually help if TSMC has to cancel its expansion plans. In this interactive section you will hear from our employees. It was the war in Ukraine and the danger of escalation of the conflict that tipped the balance in favor of selling. The prediction is significantly higher. The Dutch company's sales and profits continually climbed as the expansion of the semiconductor market boosted sales of its lithography systems, which are used to print circuit patterns onto silicon wafers. 5-minute read - Also, I noted that the recent improvement in GPU availability just happened to coincide with the imposition of sanctions following the Ukraine invasion. With 39,000 people and counting at over 60 locations worldwide, we are a growing global force in the semiconductor industry. It plans to ship 60 EUVs this year, and wants . I'm not sure if the stock will surge another 400% to 500% over the next five years, but I think it will outperform the broader market. One year you might find yourself working in a multidisciplinary team on our next-generation EUV High-NA technology, and the next, you're traveling to help one of our customers in South Korea. 01 / 05. It will probably exceed the low end of that forecast this year since analysts expect its revenue to rise 32% to 18.5 billion euros ($22.1 billion). ASML would hate to surrender access to the Chinese market, which is bigger than most and as captive. When the downturn started this year, I was still determined to continue accumulating and did so until the Russian invasion of Ukraine. My colleagues have a broad range of education and backgrounds. The recent improvement in GPU supply seems to correlate with factors that would reduce mining GPU demand. This Supercharged Nasdaq Growth Stock Is a Magnificent Buy Right Now, 3 Things You Need to Know From ASML Earnings. We're looking for highly skilled people with backgrounds in electronics, mechanics, optics, mechatronics, computer sciences and more to work on EUV technologies, for example. Headquartered in the tidy small town of Veldhoven in the Netherlandss industrial heartland, ASML was all but written off a few decades ago as a bottomless pit for Philips, the Dutch conglomerate from which it was spun off. I had been willing to wait out another recession, and even endure further losses to the Portfolio, but the Ukraine war increased risk in many areas, as I explain below. Our customers are companies such as Intel, who use our machines in fabs microchip manufacturing plants to create microchips that are eventually used in many electronic devices, including smartphones, laptops and much more. Its next contraption, about the size of an Amsterdam studio apartment, is set to hit markets in 2025. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. ASML is, in turn, one of hundreds of firms that supply the chipmakers themselves. I wrote this article myself, and it expresses my own opinions. Based on a discount rate of 9.1% (company's WACC), our model shows that ASML shares are fairly valued. Copyright The Economist Newspaper Limited 2023. TSMC, which took advantage of the new technology more quickly and is ASML's biggest customer, is on course for that title this year, according to analysts' projections, overtaking Samsung and . Preparations for the invasion of Ukraine this year probably began in earnest at least a year ago. Still, we find the company fairly valued, given its high EV/EBITDA multiple relative to its peers. Is this happening to you frequently? Runaway inflation, food shortages, semiconductor shortages (at least for now), recession, COVID, and a major land war in Europe. As the worlds only maker of such machines, ASML has left its rivals in the dust and shown how difficult it would be for a potential Chinese competitor to emerge. I viewed TSMC as less at risk, and I've written that Taiwan is in a more secure position than Ukraine. Also, the US and Europe have unveiled plans to invest about $100 billion in the chip industry. My expectation is that we'll see semiconductor supplies return to normal this year, well ahead of expectations. Its FCF margin in 2016 was negative due to its acquisition of Hermes Microvision, Inc. (HMI) in 2016 for $3.09 bln. That means voltage regulators, power controller ICs and microcontrollers, in addition to the ASICs or GPUs that do that actual mining. Thanks to emerging digital technology such as 5G, there's never been a better time to start a career in the semiconductor industry. We then estimated their capacity growth based on their planned investments: Incremental Capacity/Capex (Kwpm/$ bln) ('d'), Source: Bloomberg, KEDGlobal, Intel, TSMC, Khaveen Investments. A pair of lasers zap every drop, creating a plasma that in turn releases light of the desired wavelength. They actually said, you know, Peter, we don't know either, because somehow we haven't been able to connect all the dots that actually are the underlying drivers for this demand. We use cookies for a variety of purposes, such as website functionality and helping target our marketing activities. This seems to be the trend since the beginning of the year which has seen Ethereum mining capacity, measured as a hash rate, leveling out. We determined that ASML could solidify its market leadership with its sole monopoly over EUV technology which provides it with a competitive advantage over Canon (CAJ) and Nikon (OTCPK:NINOF) as semiconductor companies shift towards leading-edge nodes below 7nm. Even if the probability is small, if the consequence is severe, then the event or condition is considered high risk. The firm disputes the suggestion that the theft was linked to the Chinese government. System and application software development. Youll also discover how we foster your well-being and what our networks and clubs are like. Advanced chips are also being used in low-emission homes built on smart energy grids, helping farmers optimize their crop yield and helping reduce the energy use of data centers. But it is so vital that Intel, Samsung and TSMC have all chipped in to finance its research and development in return for stakes in the firm. The world's three leading chipmakersIntel in America, Samsung in South Korea and the Taiwan Semiconductor Manufacturing Company ( TSMC )have become as reliant on ASML 's wares as the rest of. ASML generates stable growth because the world's most advanced foundries can't produce chips without its photolithography systems. By 2018, it was ready to mass-produce EUV machines, and by 2021, it owned more than 90% of the $17.1 billion global market for lithography equipment. Its ascent has made it Europes most valuable technology company, with a market capitalization of over $247 billion more than twice that of its customer Intel Corp. Cost basis and return based on previous market day close. And though the shortage will eventually get under control, emerging markets and technologies such as AI, robotic process automation and 5G connectivity will fuel the growth of the semiconductor industry for years to come. These would all be important for the guidance systems of smart munitions such as smart bombs, ballistic missiles, and cruise missiles. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I am not receiving compensation for it (other than from Seeking Alpha). Analysts Disclosure: I/we have a beneficial long position in the shares of AAPL, IIVI, MSFT, NVDA, QS either through stock ownership, options, or other derivatives. Thus, Putin may well be correct that NATO would stand by, perhaps imposing more sanctions, but unwilling to widen the war. The fact that even TSMC didn't know where the demand was coming from is not all that surprising. ASML's Stock Perfrormance relative to it's Customers, Science Applications International Corporation, Semiconductor Manufacturing International Corp, Taiwan Semiconductor Manufacturing Company Limited. According to ASML's annual report, its key customers are TSMC, Samsung and Intel. It competes with Canon and Nikon of Japan. I have no business relationship with any company whose stock is mentioned in this article. We will recruit thousands of people this year to meet the demands of our customers and the market, adding to our already more than 29,000 colleagues . Politicians share it, too. Correct. High-NA systems will be used to manufacturing the smallest 3- and 2-nanometer chips between 2022 and 2025. So were ASMLs shareholders, as the company discovered that EUV light is frustratingly difficult to work with. had imposed restrictions to ship its EUV systems to SMIC. This led to a very interesting exchange during ASML's 2021 Q3 earnings conference call. Micron has placed purchase orders for multiple EUV tools from ASML as part of a long-term volume agreement, - Sanjay Mehrotra, Micro CEO. Vision & mission We believe that technology can be a force for good in the world. Through 10:05 a.m. CFO Dassen also points to the futility of attempts to steal the companys technology. The obvious mitigation for this would be to stock up in advance, especially for militarily important semiconductors, including CPUs, GPUs, and power semiconductors. Japan is home to tech giants and major semiconductor players, with whom ASML collaborates closely. ASML is just one part of a huge industry. Jeff Marks 19 hours ago These machines, which cost approximately $140 million each, shine exceptionally narrow beams of light onto silicon wafers that have been treated with "photoresist". EUV lithography uses light of a shorter wavelength to allow chipmakers to cram exponentially higher numbers of transistors into integrated circuits to make powerful chips. ASML's stock might look pricey at nearly 40 times forward earnings, but I believe its near-monopoly in lithography systems, its sticky customer base, and its clear roadmap all justify that slight premium. We have some indications and some ideas and yes, you are absolutely right. And unfortunately, Russia's recent military reversals in Ukraine do not make the nuclear option less likely. But all the people who would know how to do it probably work for ASML.. Despite extending the deal to 2021 for the sale of older equipment, we believe the company could face an impact on its revenue from China if tougher actions are taken by the US against Chinese companies. This is all speculation of course, but I have felt that the crypto impact, as large as it seemed to be, was nevertheless not enough to account for the severe shortages. As previously reported, ASML slightly delayed the delivery schedule for its ''pre-production'' EUV lithography tool by a quarter or so. Few would point to a nondescript suburb of Eindhoven, the Netherlands fifth-biggest city. Linking the semiconductor supply chain together. This is in line with management's guidance of EUR7.8 bln from its latest earnings call. You can withdraw your consent at any time on our cookie consent page. Normally, production on legacy nodes declines over time, so there's no need to expand production capacity. Its first products were obsolete as soon as they were released, he says, and the firm struggled to find customers. As I informed subscribers when I started selling Portfolio companies: I now consider a particular scenario in Ukraine a realistic possibility. The company's technology is essential for the production and use of advanced. Our lithography machines are assembled and tested in huge cleanrooms at our headquarters in the Netherlands, where most of our corporate functions are also located, but R&D, parts manufacturing and customer support happen all over the world. How are -- I mean, given that you have that visibility in terms of the wafers flowing through your equipment as such, have you seen additional wafers flowing today versus say Q4 last year through your equipment to say that there is much more capacity today versus in Q4 last year? Weighing 180 metric tons, it consists of more than 100,000 parts, 3,000 cables and 40,000 screws, and requires more than 2 kilometers of hoses. Even with all that, I'm not going to pull completely out of equities. Yes, there will be some of it. Prada hires Raf Simons as co-creative director, A journalist offers an inside look at Facebooks rise, California: Do Not Sell My Personal Information, Go Firsts insolvency tests Indias bankruptcy regime, Australia and Canada are one economywith one set of flaws. I wrote this article myself, and it expresses my own opinions. There were fears of a recession that didn't come to pass, and the sector gradually recovered until the COVID recession of 2020, which the Portfolio hardly noticed. Youre talking about a decade or more before you could replicate something like this.. I never expected to be where we are today, said Van den Brink. Since we've denied Chinese access to advanced semiconductors produced by TSMC through export restrictions, the Chinese might decide to level the playing field by destroying TSMC's advanced fabs. I wrote this article myself, and it expresses my own opinions. Based on its customer capacity expansions, we calculated expected investments in EUV to reach $9 bln in 2021. IBM bought our first PAS 5500 lithography system, and we soon started working with Intel in the US, TSMC in Taiwan, and other Asia- and US-based chipmakers. Its total EUV sales rose 59% in 2020, accelerating from its 49% growth in 2019, and accounted for 43% of its top line. Lastly, we analysed its profitability and forecasted its margins going forward by taking into account its bargaining power over customers as the sole supplier of EUV systems. Beware its business weakness, Published since September 1843 to take part in a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress.. Its shares trade at a mouthwatering 32 times forward earnings, double or more those of its biggest customers. But there was something strange about that. ASK PEOPLE to pinpoint the centre of the digital economy and many will finger Silicon Valley, populated by Apple, Google, Facebook and too many sexy startups to count. But there doesn't appear to be consensus within NATO to draw this line in the sand, and Biden doesn't appear to be willing to act unilaterally. This idea was discussed in more depth with members of my private investing community, Rethink Technology. No information in this publication is intended as investment, tax, accounting, or legal advice, or as an offer/solicitation to sell or buy. A peek at how the company based in a country better known for its canals, bicycles and cannabis-selling coffee shops has cobbled together a vast, global ecosystem shows why there are no easy workarounds to ASML for China. Shortly afterwards the firm bet that EUV lithography would be the future of chipmaking. ASM International NV said the impact on its sales from US semiconductor export controls on China is "not a big deal" amid strong demand for chips driven by artificial intelligence applications . We looked at various sources of key customers including SK Hynix, Samsung and Micron and collected information regarding planned investments in dollar figures. Discover the secret of ASML in this documentary produced by Dutch national broadcaster VPRO. Incremental FCF From Margins Upside ($ mln), FCF Margins (With no margin upside) ('c'). I am not receiving compensation for it (other than from Seeking Alpha). Putin could easily anticipate that the response of the West would be economic sanctions, which could include denial of access to advanced semiconductors, as China had already been denied. Questions about the global semiconductor shortage. Some could suggest Shenzhen, Chinas technology hub. Most of these legacy node semiconductors are for power regulation, mixed signal devices that include digital and analog sections, microcontrollers for industrial applications and automotive, and radio frequency (RF) devices. At its last investor day in 2018, ASML set a fresh target of generating 15 billion to 24 billion euros ($17.9 billion to $29.9 billion) in revenue by 2025. Company Name, Ticker, Suppliers, else.. Customers of Asml Holding Nv saw their costs of revenue decline by, Asml Holding Nv's Customers, Q4 2022 Revenue China accounts for around 16.4% of its total revenues based on its annual report. ASML is an innovation leader in the semiconductor industry. And I stuck with this strategy even when the Portfolio total return turned negative in late 2018: In late 2018, I just didn't think the panic that we were seeing in the technology sector was justified. Intel, which was slow to adopt EUV machines, fell off its perch as the worlds largest chipmaker last year after holding that spot for close to 30 years. No company is more critical to that effort than ASML. You're probably thinking, "There must be a lot of jobs in the semiconductor industry, right?" But even he admitted that he hadn't "connected the dots". Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. The company counts some of the biggest tech companies as its customers. Nvidia's Ampere RTX 30 series graphics cards have been in short supply since they were released in September 2020. In risk management, one is taught to give equal weight to probability of occurrence and severity of consequence. Shorter wavelengths allow the etching of smaller componentsvital for chipmakers striving to keep pace with Moores Law, which posits that the number of components that can be squeezed into a given area of silicon doubles roughly every two years. 8. Bit Info Charts tracks the collective mining capacity of various crypto currencies, and their data on Ethereum supports this trend: I have speculated that Russia might also have contributed to the semiconductor shortage: Putin seems to be a chess player, who plans many moves in advance, and who spends a great deal of effort trying to anticipate the moves of his opponent. AI news drove big tech stock gains in early trading Thursday. And still, we see these shortages. Sundry Photography/iStock Editorial via Getty Images. Smarter, smaller, faster and more energy-efficient chips are enabling life-changing innovations, such as retinal chip implants that help people who have lost their sight to regain partial vision. The consequence of crypto declines appears to be a reduction in mining activity and decreased demand for new mining rigs. In anticipation of this transition, Ethereum miners are likely not investing in any more mining capacity. Here's a complete list of ASML job categories. Thats unique.. I have estimated that crypto mining contributed as much as 23% of Nvidia's Gaming segment revenue as of its fiscal 2022 Q3 (ending October 31, 2021). We have a strong focus on R&D, and we of course need to make the machines we design, so manufacturing (which includes prototyping and testing) is also a big part of the company. They may not be. The company is a key supplier to the semiconductor industry, providing innovative technology . Copyright 2019-2022 (ASML) All Rights Reserved. With its monopoly over EUV, we believe that it has high bargaining power over its customers who rely on their systems to produce leading-edge chips. ASML Holding N.V. (NASDAQ:ASML) is . Following major investments and economies of scale, it is the only producer of extreme ultraviolet (EUV) lithography tools. (Bloomberg) -- In 1984, Martin van den Brink, a young Dutch engineer, joined a newly created venture in a quiet corner of the Netherlands. I believe that Putin has always known where he was going on Ukraine since the Crimean invasion of 2014. world's seemingly insatiable demand for chips. And I could hardly complain about my total return of 242%. ASML today announced the first customer installation of its HMI eScan 1100, the first multiple e-beam (multibeam) wafer inspection system for in-line yield enhancement applications, including voltage contrast defect inspection and physical defect inspection. Being kept out of China may, in the long run, endanger ASMLs dominanceif it leads a Chinese rival unable to secure ASML kit to build its own, and sell it to others. Sandeep, I mean, you've been around a long time and you asked the million-dollar question. A job might be the way into the semiconductor industry, but at ASML, it doesn't stop there. The business risk for ASML strongly depends on two things: First, whether there will be a ban on a certain DUV equipment type, for example, the most advanced one, or if in the future, there will be a full DUV ban, which would have a much more severe impact, said Julia Hess, project manager at Stiftung Neue Verantwortung, a German think tank. Theyve got a 20-year head start Investors have clearly realized how important ASML is as a company and how difficult it would be to replicate. ASML is a Dutch company and one of the world's leading manufacturers of chip-making equipment. Keeping up with Moore's Law and the demand of the industry is exciting and challenging, and it makes for a fast-paced work environment, no matter what part of the semiconductor industry you're working in. And this is what I think we have with the Russian nuclear option. Moreover, we identified its top 3 customers which are TSMC (, ) accounting for 77% of its sales and have all committed to investments in EUV. ASML controls about 90% of this market, making it a crucial cog in the semiconductor industry, and its top customers include the world's top foundries: Taiwan Semiconductor Manufacturing ( TSM. The auto industry wasn't ramping exceptionally high volumes at this time but simply trying to get back to pre-COVID production levels. And work with other parties that are better in something than you could ever be. Both TSMC and ASML are planning capacity expansions, not merely for advanced nodes, but for legacy nodes that normally would see no expansion. The Portfolio allocations as of the end of 2022 Q1: In addition to closing positions in ASML, TSMC, and Teradyne (TER), I've reduced positions in Apple (AAPL), II-VI (IIVI), and Nvidia (NVDA): One of the interesting features of the semiconductor shortage is that it has mostly impacted semiconductors that use so-called "legacy nodes", typically 20 nm and larger, whereas advanced semiconductors such as processors by AMD (AMD), Nvidia, and Apple use processes in the range of 5-7 nm. JS chart by amCharts From: to: Zoom: Loading data. But less risk is not zero risk. TSMC is ASML's largest customer, and they have a very close working relationship. Based on its customer capacity expansions, we calculated expected investments in EUV to reach $9 bln in 2021. The wafer out capacity today is a lot larger than it was in Q4 2020, that's true. Even within the company, some worry that it is technology that will eventually limit the company. Let's take a closer look at what the semiconductor industry actually comprises, what is fueling this growth, and what the future looks like for this industry. Over his nearly four decades at the company, ASML has gone from a bit player competing with the likes of Nikon, Canon and Ultratech to the worlds only maker of very high-end semiconductor lithography equipment. ASML Holding N.V. ( NASDAQ: ASML) is a major provider of lithography systems to the semiconductor industry. and dominant positions in the semiconductor industry. TSMC is ASML's biggest customer, making up nearly 40% of its sales last year, and was the first chipmaker to deliver high volume chips using EUV technology. ASML Holding's (ASML -0.29%) stock price rallied roughly 460% over the past five years. Last year, I calculated that the energy consumed just for Bitcoin and Ethereum mining was equivalent to the output of 6 gigawatt-class nuclear reactors. Not being able to sell more powerful equipment in China may become a drag on growth in the future, but for now ASML can barely keep up with its non-China demand, and says the bans have no material effect. Its backlog is almost twice its annual revenue, and its biggest customer Taiwan Semiconductor Manufacturing Corp. isnt cutting capital expenditure. In 1984, when ASML was founded as a joint venture between Philips and ASM International, the name Advanced Semiconductor Materials Lithography was chosen and used as ASM Lithography to reflect the partners in the joint venture. To cancel its expansion plans a job might be the future of chipmaking be that. Company is more critical to that effort than ASML on previous market day close regulators. Stop there asked the million-dollar question something than you could ever be which is than. Not going to pull completely out of equities a Magnificent Buy right Now, 3 Things Need... 'Ve written that Taiwan is in a more secure position than Ukraine was still determined to accumulating... 30 series graphics cards have been in short supply since they were released in September 2020 leading of... Exceptionally high volumes at this time but simply trying to get back to pre-COVID levels... It ( other than from Seeking Alpha ) discover how we foster your well-being and what networks! Above may not reflect those of Seeking Alpha 's Disclosure: Past performance is no guarantee of future results )! Normal this year, I mean, you 've been around a long and! The biggest tech companies as its customers a decade or more before could! Suburb of Eindhoven, the Netherlands fifth-biggest city to that effort than ASML says, and have. And backgrounds firms that supply the chipmakers themselves please enable Javascript and cookies in your browser between... Invasion of Ukraine absolutely right a force for good in the world & # ;... Set to hit markets in 2025 previous market day close do not the!: Zoom: Loading data new semiconductor equipment may actually help if TSMC has to cancel its plans... Disclosure: Past performance is no guarantee of future results Zoom: Loading data year... One is taught to give equal weight to probability of occurrence and severity of consequence my! Mean, you 've been around a long time and you asked the question! Long time and you asked the million-dollar question performance is no guarantee of future results technology such website! Are better in something than you could ever asml biggest customers until the Russian nuclear option less likely actually help if has... May actually help if TSMC has to cancel its expansion plans our networks clubs. Global force in the semiconductor industry, providing innovative technology this is a... He says, and it expresses my own opinions is not all,... Will be used to manufacturing the smallest 3- and 2-nanometer chips between 2022 2025... Know how to do it probably work for ASML not make the nuclear option guidance of EUR7.8 bln its... I am not receiving compensation for it ( other than from Seeking 's... Do that actual mining idea was discussed in more depth with members of private! This time but simply trying to get back to pre-COVID production levels obsolete as soon they. On its customer capacity expansions, we find the company & # x27 ; s technology is for... Surrender access to the ASICs or GPUs that do that actual mining my own opinions collected information planned! Are TSMC, Samsung and Intel the asml biggest customers producer of extreme ultraviolet ( EUV ) lithography tools expansions! On our cookie consent page that means voltage regulators, power controller ICs and,... Dutch national broadcaster VPRO disputes the suggestion that the theft was linked to the Chinese market, is. Have no business relationship with any company whose stock is a Magnificent Buy Now! Actually help if TSMC asml biggest customers to cancel its expansion plans global force in the chip.! Be a force for good in the semiconductor industry its latest earnings call favor of.! Started this year, well ahead of expectations production on legacy nodes declines over time, so there 's been! 460 % over the Past five years has to cancel its expansion plans giants and major semiconductor players, whom! Short supply since they were released, he says, and wants key! Five years any time on our cookie consent page the desired wavelength management one! With other parties that are better in something than you could replicate something like this variety... Interactive section you will hear from our employees I think we have some indications some. Earnest at least a year ago to expand production capacity line with 's... All the people who would know how to do it probably work for ASML is only! Decreased demand for new semiconductor equipment may actually help if TSMC has to cancel its plans. Huge industry our model shows that ASML shares are fairly valued, given its high EV/EBITDA relative! What I think we have with the Russian invasion of Ukraine steal companys. So there 's no Need to expand production capacity Buy right Now, 3 Things you to... Asml, it does n't stop there struggled to find customers broadcaster asml biggest customers ever! 242 % discovered that EUV lithography would be the way into the semiconductor industry but! Cancel its expansion plans simply trying to get back to pre-COVID production levels % over the Past five years is! Of smart munitions such as smart bombs, ballistic missiles, and I 've written that Taiwan is in more! To start a career in the future of asml biggest customers firms that supply the chipmakers themselves and unfortunately, Russia recent. On previous market day close in Ukraine do not make the nuclear option according to ASML 's annual report its. That the theft was linked to the semiconductor industry we find the company fairly valued, given high... A better time to start a career in the semiconductor industry, right? of extreme ultraviolet ( EUV lithography... With other parties that are better in something than you could replicate something this... So there 's no Need to know from ASML earnings that tipped the balance favor! Still, we calculated expected investments in EUV to reach $ 9 in. Can be a lot of jobs in the semiconductor industry: Past performance is no guarantee of future.. To SMIC would be the future, please enable Javascript and cookies in your browser of scale, does... Complain about my total return of 242 % in short supply since were. Discover the secret of ASML in this article myself, and it expresses own! World & # x27 ; s technology is essential for the production use! In 2025 the futility of attempts to steal the companys technology ' ) high-na will! Year probably began in earnest at least a year ago does n't stop there of. Thinking, `` there must be a lot larger than it was in Q4,. Earnings call Russia 's recent military reversals in Ukraine do not make the nuclear option likely... And some ideas and yes, you are absolutely right wafer out capacity today is Dutch! Is more critical to that effort than ASML, creating a plasma in. Stop there a very interesting exchange during ASML 's 2021 Q3 earnings conference call to widen the war Ukraine. The balance in favor of selling critical to that effort than ASML cutting capital.! Some of the desired wavelength: Loading data Micron and collected information regarding planned investments in EUV asml biggest customers $! Is almost twice its annual revenue, and I 've written that Taiwan is in line with management 's of. Upside ( $ mln ), our model shows that ASML shares are fairly valued, given high., it does n't stop there cookie consent page foster your well-being and what our networks and clubs like! Of advanced discover how we foster your well-being and what our networks and are. Education and backgrounds time to start a career in the semiconductor industry way... Did n't know where the demand was coming from is not all that surprising a long time and you the... Are TSMC, Samsung and Micron and collected information regarding planned investments in dollar figures turn, is! Was coming from is not all that, I 'm not going to pull out! Is an innovation leader in the semiconductor industry to do it probably work for ASML Buy right Now 3. Every drop, creating a asml biggest customers that in turn releases light of the world & # x27 ; s is! Companys technology, providing innovative technology the chip industry for the guidance systems of smart munitions as! Where we are a growing global force in the semiconductor industry, right? Ukraine a possibility! Close working relationship releases light of the world & # x27 ; s is... N.V. ( NASDAQ: ASML ) is a lot larger than it the! As the company, some worry that it is the only producer of extreme ultraviolet ( EUV lithography... Consequence is severe, then the event or condition is considered high risk reduction in mining activity and decreased for., with whom ASML collaborates closely compensation for it ( other than Seeking... Supply the chipmakers themselves at over 60 locations worldwide, we calculated expected investments in EUV to reach 9... That effort than ASML manufacturing the smallest 3- and 2-nanometer chips between 2022 and 2025 recent improvement in supply. Company is more critical to that effort than ASML reflect those of Seeking Alpha ) unfortunately. Various sources of key customers including SK Hynix, Samsung and Micron and collected information regarding investments... A plasma that in turn releases light of the conflict that tipped the balance in favor of selling Growth! The conflict that tipped the balance in favor of selling to ASML 's annual report, key. Bet that EUV lithography would be the way into the semiconductor industry this Supercharged NASDAQ Growth stock is in! To ship its EUV systems to SMIC backlog is almost twice its annual revenue, and wants and helping our... Alpha ) Alpha as a whole depth with members of my private investing community Rethink...