ASML’s Wide Moat Should Make It the Main Lithography Provider for the Next Two Decades

We believe ASML will remain the top lithography equipment provider in semiconductor foundries for at least the next two decades. Taiwan Semiconductor Manufacturing Company, Intel and Samsung’s fabs were redesigned one decade ago to make them suitable for extreme ultraviolet lithography, a costly endeavor, so it is quite unlikely ASML will be displaced from its place in the foundry. In addition, no competitor has yet matched ASML’s technological leadership and the company’s competitive advantage will likely keep expanding as it grows its already high EUR 3 billion research and development budget.