The coming of AI has led to incredible growth for chip manufacturers such as Nvidia, Advance Micro Devices, Inc (AMD), Micron, etc. In fact, the tech industry is seemingly carrying entire global stock markets, with AI-based companies leading the charge. While chip manufacturers such as Nvidia and Micron are in the lime light, there is one company that is powering the entire sector: ASML (originally stood for Advanced Semiconductor Materials Lithography). ASML
How Is ASML Powering Nvidia, Micron, Etc.?
The semiconductor industry is heavily dependent on lithographic processes, a printing method that uses light to transfer complex circuit design patterns from a template mask onto a silicon wafer. Extreme ultraviolet (EUV) lithography is the forefront of this method. ASML is the world’s only manufacturer of EUV lithography machines.
Nvidia doesn’t manufacture its own chips. The company relies on TSMC to manufacture its renowned chips. TSMC in turn uses ASML’s EUV machines to produce the Nvidia’s latest AI GPUs. ASML’s machines are at the heart of the semiconductor industry.
Micron is one of the biggest beneficiaries of the AI boom. Like Nvidia, Micron is also dependent on ASML to manufacture advanced DRAM and High Bandwidth Memory (HBM).
The list does not stop there. Although TSMC is ASML’s largest client, there are other clients as well. The company’s EUV platforms are also used by Samsung and Intel to create their most sophisticated semiconductors. It would be much harder to produce today’s state-of-the-art processors and memory chips without ASML’s equipment.
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ASML’s unique position has also led to a significant stock price growth. The company’s stock has risen by 147.76% in the last year. Given the current market trajectory and the rising demand for AI chips and memory, ASML will likely sustain its upswing well into the future.