ASML is a critical supplier of semiconductor lithography machinery for foundries like Intel and TSMC. In my video discussing TSMC's $28 billion capital expenditure, I briefly discussed their situation. Their CEO said in an earnings call that they can make 50 high-end EUV lithography machines a year. That's it. Without those machines, the foundries cannot churn out more 5nm chips.

So why not make more of these machines? ASML itself has thousands of suppliers making parts that end up into its machines. Coordinating and integrating all of these parts together into a single smooth-running machine is immensely challenging.

In this brief video, we will continue our deep dive into ASML and look at how the company puts together centi-million dollar lithography machines for multi-billion dollar semiconductor companies. And how EUV makes it so much harder.

Bookmarks
1:35 The Supplier Network
3:16 Why Outsource?
5:25 Process Steps
7:45 Servicing a Machine
9:03 Chain Management Challenges
10:42 EUV
13:35 Conclusion

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