TIP746: ASML: Europe's Tech Monopoly
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Geopolitical Tensions and the Semiconductor Industry
This chapter explores the geopolitical tensions arising from China's technological advancements, focusing on the semiconductor industry and its effects on U.S. interests. It examines government concerns, strategic actions against companies like TSMC, and the broader implications for global chip supply and demand.
In this episode, Clay unpacks the extraordinary rise of ASML — a little-known Dutch company that quietly became the most important player in global technology. Since its IPO in 1995, ASML has compounded at 20% annually.
ASML holds one of the most powerful monopolies on earth as it’s the sole manufacturer of EUV lithography machines, which make the world’s most advanced semiconductor chips. Without ASML, companies like Apple, NVIDIA, and TSMC couldn’t power iPhones, AI data centers, or the modern digital economy.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro 04:56 - How ASML grew from a Philips spinoff into Europe’s most important tech company. 13:31 - How ASML’s partnership with TSMC shaped the global semiconductor industry. 32:16 - Why ASML holds a near-monopoly on EUV lithography machines. 41:01 - Why the geopolitical tension between the US and China place ASML at the center of technology power struggles. 53:30 - How investors can view ASML’s growth, risks, and future opportunities. 01:00:23 - What makes ASML’s moat nearly impossible for competitors to replicate. 01:05:08 - The dual leadership that propelled ASML’s rise and built a culture of relentless focus. And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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- Marc Hijink’s book: Focus: The ASML Way.
- Related Episode TIP727: 7 Powers by Hamilton Helmer.
- Related Episode TIVP024: TSMC: The Most Important Business in the World?.
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