One big reason for ASML's large sales growth is because litho is fast becoming a sole supplier business. ASML has more than 75% market share in immersion litho, and therefore possesses tremendous pricing power.
When EUV tools are sold, expect the gap between ASML and Applied Materials to widen considerably. Since Nikon and Canon have negligible EUV presence, ASML can charge whatever they want.
Expect EUV tool prices above $100M for this reason. Fabs could cost well above $10B. We could see the next big wave of consolidation in our industry then. I wonder how Applied Materials' Mike Splinter and Randhir Thakur plan to tackle this important strategic shift??? Litho tool prices will eventually impact companies' inclination to scale, and thereby impact sales at Applied Materials and elsewhere.
Blog That A-Ha Moment Larry Desjardin 11 comments Have you ever had an a-ha moment? Sure, you have. The Merriam-Webster dictionary defines it as "a moment of sudden realization, inspiration, insight, recognition, or ...