I don’t think this is necessarily true. The large investment required to set up a fab does benefit them in certain ways. It reduces competition. If the machines were 50 million instead of 150 million, I’m sure they’d like that. If the machines were 1000 dollars, I doubt they’d be happy about it.
Right, but it's so easy to comment on the internet "if only they could reduce the price," as if that's not something TSMC and Intel literally hire engineers for to do whatever they can. (Yes, ASML builds the machines in the end, but they have a very tight relationship with their customers and their needs, to the degree it is almost a co-engineering job.)
Intel even pre-ordered the next gen EUV (called High-NA EUV) machine from ASML that is still in development and isn’t expected to ship before 2025. Each one will cost $320m
Historically, the semiconductor business has been highly cyclical. High prices make firms overbuild capacity. Then overcapacity crashes chip prices. There is a good chance we are at the top of a cycle with this chip shortage thing. When you are at the top there is only one direction you can go...
They are just not able to ship faster and I think there was a fire in their factory a while ago which may contribute to even slower fulfillment...not sure though.
Because they aren't able to increase the production, and because they aren't able to sell to China. Which means no clients except TSMC, Samsung, and maybe Intel.
Heard the US admnistration under Trump "pressured" ASML (~netherlands) not to sell the state of the art EUV tools to China. True? how much true or how much false?
Why? Because China would flood the world with dirt cheap open source based super performant (mobile/desktop/servers) royalty-free RISC-V cpus (and gpus...) using a top notch node process (that with tons of backdoors ofc)?
ASML EUV tool: 20 millions of $, then 100 millions of $, and the next one would be 320 millions of $?
The valuations on ASML are super high (approx 40 P/E ratio). ASML is a good company and the word got out, but it was overbought, seeing approximately 4x in price from the beginning of 2019 or so to now.
The better question is why is the stock up several hundred percent in the past few years, even after falling a bit recently? The business is growing, but not that much. Good company, bad price.
They don't like it either - it's expensive and slow, but there's nothing else on the horizon so it's not worth complaining about.
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