Neither Canon nor Nikon can with ASML and their wafer machines

We dwell in an period wherein semiconductor know-how has turn into the best focus of technological competitors on the planet’s main producing international locations. In this sense, the central gear of the manufacturing line is the lithography machine, since it’s this that enables us to fabricate the wafers with the chips that later make up our processors, and on this space solely the Dutch firm ASML is ready to comply with the uptrend of the market however, to what extent?

The monopoly energy of ASML

Most folks, together with {hardware} fanatics, don’t know of ​​the facility ASML has within the lithography market. In the newest report, revealed by Bank of China Securities, some information has been offered that can assist us get an thought of ​​how far the facility of this firm based mostly in Holland reaches.

ASML-7

Let’s check out the market in 2020: According to bulletins from ASML, Canon and Nikon, world lithography machine gross sales whole 413 items among the many three firms, with a 15% year-on-year improve in shipments, which implies it’s an trade in development and that the producers of chips each time require a higher variety of machines to provide them (that is additionally excellent news as a result of it signifies that they’re both renovating their machines or rising their manufacturing capability, all is claimed).

Of these 413 items bought in 2020, 258 got here from ASML, representing 62.5% of the entire market share. Canon’s gross sales have been 122 items, about 30%, whereas Nikon bought solely 33 items, representing 8% of the entire. However, if we do that identical calculation counting the financial revenue, ASML would monopolize 91% of the quota, whereas Canon would preserve 6% and Nikon 3% nothing extra; In different phrases, between the 2 Japanese firms they don’t even attain a 10% market share, whereas ASML accounts for greater than 90% of revenues.

There is not any actual competitors in lithographic machines

It is obvious that between the 2 firms that compete with ASML on this market, in actuality they don’t compete for gross sales or revenue, however the state of affairs is much more stunning as a result of Canon and Nikon lithographic machines are of Very low-end in comparison with ASML’s EUV machines, thought of the high-end and the one ones that comply with the present market pattern, which more and more requires smaller and extra superior chips.

EUV cover

This implies that, along with what we have now already defined by way of market share on the gross sales stage and on the revenue stage the place ASML dominates and by far, in actuality the Dutch firm doesn’t have another firm that manufactures on the identical stage as them, that’s to say, they actually don’t have any competitors on this regard in their product vary. This additionally implies that they’ve a complete monopoly within the trade and that many firms rely on them; Obviously, the antitrust legislation can not come into pressure right here as a result of in actuality it’s that there are not any firms that manufacture the identical merchandise as them, it’s actually unimaginable that they don’t have a monopoly as a result of there is no such thing as a competitors.

The unhealthy information about that is that if ASML determined it wanted extra income (issues are going fairly properly for them on this regard for now as a result of they introduced in $ 4.5 billion in income final yr) it might increase the worth of its machines, which it will find yourself impacting the chip market. Probably there, the European Union would come into play to stop abuses, however the actuality is that your entire semiconductor market is virtually within the palms of this firm.