Car manufacturers Audi, Renault and Stellantis all
announced temporary factory shutdowns in 2021 due
to the semiconductor shortage. This crisis highlights
European industry’s dependence on Taiwanese foundries (TSMC and UMC). But behind these giants is another
giant, and it is European: ASML. The little known Dutch
company is the biggest success story in European tech.
In comparison, ASML has a higher valuation on the stock
exchange than Volkswagen, Siemens or Novartis. The
company is the world’s only manufacturer of EUV
(Extreme Ultra-Violet) machines, which are used by
the best foundries worldwide (TSMC, Intel, Samsung,
etc.). In fact, ASML is taking full advantage of the
higher global demand for semiconductors. Its revenue
hit €14 billion in 2020, up by almost 20% compared to
2019. Most analysts recommend buying shares.