ASML holds the most irreplaceable monopoly in the technology supply chain - its EUV machines are required to manufacture every advanced AI chip, making it the ultimate beneficiary of AGI-driven compute demand.
ASML is a Dutch company that is the world's sole manufacturer of extreme ultraviolet (EUV) lithography machines, which are essential for producing the most advanced semiconductor chips. Lithography is the process of printing circuit patterns onto silicon wafers, and ASML's machines are irreplaceable in the fabrication of leading-edge chips at 7nm, 5nm, 3nm, and below. ASML also produces deep ultraviolet (DUV) lithography systems for less advanced nodes. The company has an absolute monopoly on EUV technology.
ASML's customers are the world's leading semiconductor manufacturers. The customer base is extremely concentrated: TSMC (largest customer, ~30-35% of revenue), Samsung, Intel, SK Hynix, and Micron are the primary buyers of EUV systems. A smaller number of additional chipmakers purchase DUV systems. China-based fabs have been significant DUV customers, though export restrictions are limiting this.
ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, essential for manufacturing advanced semiconductor chips at 7nm and below. There is literally no alternative supplier on Earth. AGI cannot replace a physical machine that uses plasma-generated EUV light to pattern silicon wafers at atomic scale. Every advanced AI chip (NVIDIA H100/B200, AMD MI300, Apple M-series, Google TPU) requires ASML's EUV machines to manufacture. ASML's customers are the world's leading chip fabs: TSMC, Samsung, Intel, SK Hynix, and Micron. AI/AGI drives massive demand for advanced chips, which means massive demand for ASML EUV machines.