The Chipmakers' Dilemma: Risk and Reward in a World of Monopolies The semiconductor industry is often described as a duopoly, with Taiwan Semiconductor Manufacturing (TSM) and ASML Holding vying for dominance.
However, upon closer inspection, it becomes clear that ASML holds the upper hand – both literally and figuratively. At its core, ASML's technology enables TSM's operations.
The company's extreme ultraviolet (EUV) lithography machines are a marvel of engineering, capable of producing chips with unprecedented precision at a staggering cost: hundreds of millions of dollars per unit.