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18/10/2021

ASML Stock

ASML is a leading company in the semiconductor industry. Its products are used to manufacture chips and integrated circuits. The company is thus vital for manufacturers of electronic and computer devices

ASML is a world leader in the design and production of photolithography equipment, with sales of €14 billion in 2020. The company, based in the Netherlands, increased its sales by 18.3%. Its net profit then rose from 2.6 billion (2019) to 3.6 billion

Recent financial data shows that ASML stock is a good investment prospect. But before you decide whether or not to invest in this company, read on to find out some essential information. 

History of ASML 

ASML (Advanced Semiconductor Material Lithography) was founded in 1984 by Philips and ASM International. It became an independent company in 1988. Its headquarters are located in Veldhoven (Netherlands). 

Here are some important dates concerning the acquisitions made by the company :  

  • 1999 : ASML acquired Mask Tools, a company also working in the semiconductor field.
  • 2007 : it acquired its American competitors Silicon Valley Group and Brion Technologies Inc. 
  • 2013 : acquisition of Cymer, a company specialized in the manufacture and maintenance of deep ultraviolet light sources. 
  • 2016 : Hermes Microvision joined the Dutch group. The Taiwanese company specializes in the detection of defective wafers (i.e very thin semiconductor wafers). 

ASML business lines

ASML is responsible for 60% of the electronic chips found in smartphones, computers, video games and other electronic devices, but does not produce the chips itself. Its activities are focused on the design of photolithography machines that are used to manufacture chips.

Thanks to its research and acquisitions, ASML has advanced technology in the production and design of lithography systems. It is always ahead of its competitors in the launch of revolutionary techniques on the market. ASML initiated the Extreme Ultraviolet Lithography (EUV) tool that allows the production of very small, fast and powerful chips

The group's activities are divided into design and sale of lithography equipment and optical lithography components (73.8 %) and service provision, including maintenance (26.2 %). 

ASML stock market data 

  • Date of IPO : 1995 
  • Isin code : NL0010273215
  • Securities issued in 2020 : 418,300,000 
  • Market capitalization 2020 : 166.29 billion euros 
  • Year-end 2020 price : 397.55 euros
  • Floating capital : 80 %
  • Revenue breakdown 2020
    • Taiwan : 33.8 %
    • South Korea : 29.7 %
    • China : 16.6 %
    • United States : 11.9 %
    • Japan : 3.9 %
    • Europe, Middle East and Africa : 3.5 %
    • Singapore : 0.6 %

Factors that can influence the ASML share price 

ASML enjoys a dominant position in the lithography machine market. It has a 60% market share and enjoys the confidence of its customers thanks to its quality products. With the increasing demand for chips and integrated circuits, ASML is on a growth path. However, the emergence of competitors from countries such as China and Japan is something to watch out for, as it may pose a threat to the group. 

The firm has also formed a partnership with German companies Trumpf and Carl Zeiss. The objective is to produce chips that are essential for the deployment of 5G, artificial intelligence or the design of autonomous cars. These partnerships open up new growth opportunities for the group. 

ASML remains vulnerable to the foreign exchange market, especially since its main customers are located in Asian countries.

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