50 Facts About ASML

The Birth and Growth of ASML

ASML, a name synonymous with cutting-edge semiconductor technology, has a fascinating history. From its humble beginnings to becoming a global powerhouse, here's a look at its journey.

1. Founding: ASML was founded in 1984 as a joint venture between Philips and ASM International, headquartered in Veldhoven, Netherlands.
2. Initial Challenges: Early on, ASML struggled with a lack of commercially viable products and a workforce that many believed had been handed a ticket to nowhere.
3. Technological Breakthrough: The relentless pursuit of innovation led to the development of extreme ultraviolet (EUV) lithography, essential for producing the most advanced chips.
4. Market Dominance: Today, ASML holds a monopoly on the most advanced lithography equipment, with a market cap of over €300 billion, making it a key player in technological development.

Technological Marvels and Innovations

ASML's technological advancements have revolutionized the semiconductor industry. Their machines are at the heart of modern computing.

5. EUV Lithography: ASML's EUV machines are crucial for producing the most advanced chips, driving progress in nearly all modern computing technologies.
6. Global Presence: Employing over 42,000 people from 143 nationalities, ASML relies on a network of nearly 5,000 tier 1 suppliers.
7. Customer Base: With service points in sixteen countries, ASML's customer base spans the globe, including major tech hubs like the US, China, and Taiwan.
8. Stock Exchanges: ASML is listed on both the AEX and NASDAQ Stock Exchanges and is a component of the Euro Stoxx 50 and NASDAQ-100.
9. Revenue Model: New machine sales account for about 75% of ASML's revenue, with the remaining 25% coming from services and field options, including maintenance and upgrades.

The Complexity of ASML Machines

The machines ASML produces are marvels of engineering, requiring precision and cleanliness to function.

10. Machine Assembly: One EUV machine can take a year to assemble and deliver, with only 50 of the highest specification models delivered last year.
11. Market Value: As of March 2024, ASML was the most highly valued European tech company, with a market capitalization of about US$397 billion.
12. Technological Advancements: ASML's machines operate in a vacuum, as the whole process of etching a chip can be derailed by the tiniest of impurities.
13. Clean Environment: The machines require a highly clean environment to operate. Technician Bram Matthijssen works in one of the cleanest environments on the planet.
14. Fingerprints: A single fingerprint can cause significant damage to the machine, necessitating the use of gloves over gloves to ensure no extra dust is introduced.

The Demand and Development of ASML Machines

The demand for ASML's machines is immense, and their development process is lengthy and complex.

15. Customer Orders: The orders ASML has in the pipeline are worth double the sales made last year, indicating strong demand for their advanced lithography machines.
16. Development Time: The machines ASML makes take years, if not decades, to develop and perfect, with the highest specification machines being worked on since the early 2000s.
17. Competitive Advantage: ASML has been working on its highest specification machines for over two decades, leaving other companies in the field with quite a bit of catching up to do.

Geopolitical Challenges and Export Restrictions

ASML's advanced machines are caught in the geopolitical rivalry between the US and China, impacting their operations.

18. Geopolitical Rivalry: ASML's advanced machines are caught in the geopolitical rivalry between the US and China, with the US blocking exports to China since 2019.
19. Export Restrictions: There are reports of an agreement between Dutch and US authorities over ASML exports, but the details have not been published.
20. CEO's Perspective: ASML chief executive Peter Wennink does not think his business will be badly affected by export restrictions, as semiconductors will be made in other regions like South Korea, the US, Europe, or Taiwan.

ASML's Role in Advancing Technology

ASML plays a pivotal role in advancing the capabilities of modern technology, from smartphones to medical devices.

21. Industry Importance: ASML plays a pivotal role in advancing the capabilities of everything from smartphones and supercomputers to self-driving vehicles and medical devices.
22. Revenue Diversification: The diversified revenue stream of ASML, including new machine sales and services, helps maintain a steady income even during the semiconductor industry's inevitable cycles.
23. Training Process: Training ASML's service staff is a highly specialized process that takes around two years, further contributing to the complexity of their operations and bolstering the company's competitive advantage.

Historical Context and Early Developments

ASML's roots can be traced back to Philips Electronics, a company known for its innovative spirit.

24. Historical Context: ASML emerged from Philips Electronics, a true industrial conglomerate founded by Gerard and Frederik Philips in 1891.
25. Natlab Development: The story of ASML is largely one of its technology, starting with the development of the first Silicon Repeater at Natlab.
26. Silicon Repeater Limitations: The master mask would then be replicated onto a number of ‘working plates’ coated with silver halide. These working plates were then used to ‘contact print’ the required pattern onto a resistive film on the final silicon wafers.
27. PAS 2000 Machines: ASML initially received seventeen PAS 2000 machines from Philips, which were likely to be impossible to sell due to the risk posed by the hydraulics to any fab where the machines were installed.
28. IBM Trial: The new company had one external customer with a PAS 2000 on trial, IBM. IBM was not entirely happy with the PAS 2000 but appreciated its speed, prompting ASML to fix its flaws.
29. Hydraulic Replacement: The new company also had access to Natlab, which was continuing to work on an electrical system to replace the hydraulics in the PAS 2000.

The Rise of EUV Technology

The development of EUV technology marked a turning point for ASML, propelling it to the forefront of the semiconductor industry.

30. EUV Development: The intensified research into EUV was spearheaded by a US consortium funded by the Department of Energy, driven by a desire to regain lost ground to Japanese competitors.
31. EUV Machines: ASML's EUV machines are today essential for producing the most advanced chips, which in turn drive the progress of nearly all modern computing technologies.
32. Immersion Lithography: ASML cooperated with Taiwan Semiconductor Manufacturing (TSMC) in the development of immersion lithography. In 2004, TSMC began commercial production of 90 nanometer semiconductor nodes using ASML immersion lithography.
33. High-End Systems: ASML's high-end TWINSCAN NXT:1950i system was used for producing features down to 32 nanometres at up to 200 wafers per hour, using a water immersion lens and an argon fluoride laser that produces light at a wavelength of 193 nm.

The Impact of ASML's Technology

ASML's technology has a profound impact on the electronics industry, enabling the production of advanced microchips.

34. DUV Lithography: Deep ultraviolet (DUV) lithography devices from ASML use light that penetrates the UV spectrum to print the tiny features that form the microchip's structure.
35. First Production EUV Machine: After decades of development, ASML shipped the first production extreme ultraviolet lithography machine in either 2011 or 2013.
36. EUV Systems Shipped: As of 2022, ASML has shipped around 140 EUV systems, and it is the only company to manufacture them.
37. Machine Size: Shipping the machine the size of a truck requires significant logistical efforts and specialized handling.
38. Customer Payments: Each of ASML's latest EUV machines costs its customers over $100 million, reflecting the high value and complexity of these machines.

The Lithography Process

Understanding the lithography process helps appreciate the complexity and precision of ASML's machines.

39. ASML's Role in Chip Production: Microchips are made by building up complex patterns of transistors, or miniature electrical switches, layer by layer, on a silicon wafer.
40. Lithography Process: The light is then shrunk and focused using advanced optics and the pattern is etched onto a photosensitive silicon wafer.
41. EUV Light Generation: The crucial aspect of ASML's most advanced machines is that they can work at tiny scales by generating super fine extreme ultraviolet light – just 13.5 nanometres.
42. Precision Etching: Sander Hofman from ASML likens it to using pens with different tips: "Because of the small wavelength, that means that you basically are using a fine liner to draw these lines of integrated circuitry – instead of older generation machines which use maybe a marker pen".

The Future of ASML

ASML's impact on the electronics industry is undeniable, and its future looks promising despite geopolitical challenges.

43. Impact on Electronics: The ability to etch the silicon with such fine circuits means electronic devices can have more processing power and more memory while remaining the same size.
44. Global Electronics Industry: ASML plays a crucial cog in the global electronics industry, supplying machines that are essential for producing the most advanced chips.
45. Geopolitical Tensions: The geopolitical rivalry between the US and China has placed ASML at the center of a global battle for access to the means to make advanced semiconductors.
46. Export Restrictions Impact: The export restrictions imposed by the US have significant implications for ASML's operations and revenue.
47. Training and Maintenance: Training ASML's service staff is a highly specialized process that takes around two years.
48. Revenue Diversification Strategy: ASML's diversified revenue stream includes new machine sales and services, such as maintenance and upgrades.
49. Future Outlook: Despite the geopolitical tensions and export restrictions, ASML's future outlook remains strong.
50. Continued Investment: The company continues to invest in groundbreaking technologies and push the boundaries of what is possible in semiconductor manufacturing.

ASML's Impact on Technology

ASML's journey from a small joint venture to the world's largest supplier of semiconductor manufacturing equipment is nothing short of remarkable. Their EUV lithography machines are game-changers, enabling the production of the most advanced chips that power our modern world. With a market cap of over €300 billion, ASML dominates the industry, supplying essential technology to giants like TSMC and Intel. Despite geopolitical tensions and export restrictions, ASML's future looks bright. Their commitment to innovation ensures they remain at the forefront of technological advancements. The company's diversified revenue stream, including new machine sales and services, provides stability even during industry fluctuations. ASML's role in advancing everything from smartphones to supercomputers can't be overstated. Their cutting-edge machines and relentless pursuit of perfection make them a cornerstone of the global electronics industry.