Let's go ASML

For a monopoly, they're actually less profitable than I'd expect them to be. I guess that explains why they don't get competition - too expensive to even attempt to compete.

schmidtbag:

For a monopoly, they're actually less profitable than I'd expect them to be. I guess that explains why they don't get competition - too expensive to even attempt to compete.

This is the main problem of cutting edge chip production, it`s so complex and so expensive that very few can actually pull this off and still make money. That`s why i take my hat off to companies like TSMC and ASML, their accomplishments are almost god like!

H83:

This is the main problem of cutting edge chip production, it`s so complex and so expensive that very few can actually pull this off and still make money. That`s why i take my hat off to companies like TSMC and ASML, their accomplishments are almost god like!

Agreed, but that's the thing - TSMC is ASML's customer. So whatever complications TSMC (or Intel or Samsung) face, I imagine it's even harder for ASML since they're the ones who invented the machines.

schmidtbag:

Agreed, but that's the thing - TSMC is ASML's customer. So whatever complications TSMC (or Intel or Samsung) face, I imagine it's even harder for ASML since they're the ones who invented the machines.

True, that`s why both Intel and TSMC invested billions on ASML so they could create the same machines. Chip making has become so complex that the customers have to pay upfront so their suppliers can come up good with the desired products. It`s the same story with Apple investing billions on TSMC so they can have access to better nodes.

i agree with the above commentary. what's even more impressive is that ASML has reached these heights with vigorous American sanctions in place re: China even though the company is Dutch and has their own I.P. ASML doesn't need China (with the opposite being true) as much as they need to keep first world clients and need to keep the national government (Netherlands) off of their backs because of N.A.T.O. sensibilities. however, with that said, i would expect the U.S. government to extend special considerations (outside of E.U.) for Netherlands based businesses and for that to value hundreds of millions for constraining trade.

tunejunky:

i agree with the above commentary. what's even more impressive is that ASML has reached these heights with vigorous American sanctions in place re: China even though the company is Dutch and has their own I.P. ASML doesn't need China (with the opposite being true) as much as they need to keep first world clients and need to keep the national government (Netherlands) off of their backs because of N.A.T.O. sensibilities. however, with that said, i would expect the U.S. government to extend special considerations (outside of E.U.) for Netherlands based businesses and for that to value hundreds of millions for constraining trade.

Pretty much what happened when ASML "had to follow" sanctions against China, because of the US government's... "strong arguments" brought to the Netherlands' government. 😀

schmidtbag:

For a monopoly, they're actually less profitable than I'd expect them to be. I guess that explains why they don't get competition - too expensive to even attempt to compete.

Which is freaking smart. Most companies get too greedy, and competition comes to get a piece.