The US Had a Chance to Lead in Chipmaking Tech, and Missed lt

Investment Rating - The report does not explicitly provide an investment rating for the semiconductor industry or specific companies involved in EUV technology Core Insights - The US initially played a significant role in semiconductor technology development but has lost its competitive edge, particularly in EUV technology, to ASML and Asian manufacturers [1][2] - ASML Holding NV has established a monopoly on EUV machines, which are critical for advanced chip production, with a market capitalization exceeding $350 billion [2] - The transition to EUV technology was fraught with challenges, requiring substantial investment and collaboration among major chipmakers [5][8] - Intel's misjudgment regarding the viability of EUV technology has led to a significant decline in its market position compared to competitors like TSMC and Nvidia [12] Summary by Sections Industry Background - The semiconductor industry has evolved from using visible light to ultraviolet light for chipmaking, with a focus on achieving near-atomic scale transistors [3][4] - The development of EUV technology began in the 1980s, with significant investment from US national laboratories and private companies [4][5] Technological Challenges - EUV technology involves complex processes, including generating plasma from tin droplets and requires extremely smooth mirrors for effective operation [6][7] - Initial optimism about EUV's commercial viability proved misplaced, delaying its market introduction until 2018 [8] Competitive Landscape - TSMC has overtaken Intel in technological capabilities by successfully implementing EUV technology, while Intel struggled with alternative methods [9][10] - The geopolitical implications of EUV technology are significant, as it has enabled Chinese companies to access advanced chips, raising national security concerns for the US [10][11] Future Directions - Intel is now focusing on the next generation of EUV technology, High Numerical Aperture, to regain its competitive edge [12]