Company Overview - ASML is a Netherlands-based company that manufactures extreme ultraviolet (EUV) lithography equipment essential for chip production, dominating the semiconductor foundry market with a share estimated between 90% and 100% [1][7] - The company’s high-performance machinery is priced significantly, with legacy equipment costing nearly $100 million and the latest EXE:5200B machine priced around $400 million [8] Market Dynamics - The semiconductor industry is currently experiencing a cautious approach to purchasing new equipment due to high costs, despite the necessity for advanced technology driven by the growing demand for AI and data centers [9][12][13] - Major players like Taiwan Semiconductor Manufacturing and Samsung are currently opting to stick with existing technology rather than invest in new equipment, although this may change as competition intensifies [10][12] Future Outlook - ASML is expected to see an increase in demand for its high-NA EUV machines, with projections indicating production will rise from fewer than five units this year to approximately 20 by 2030 [14] - The company is likely to continue selling its standard EUV lithography equipment as the need for various chipmaking solutions grows, indicating a long-term demand for its technology [15] Investment Considerations - ASML's stock has seen a decline of about 20% since July 2021, contrasting with the overall market performance, which raises questions about its short-term investment appeal [3] - Despite cyclical challenges in the semiconductor industry, ASML's strong patent portfolio and market position suggest it will remain a key player as companies eventually invest in next-generation lithography tools [16][17]