ASML Faces a Fresh Threat Out of China. Is the Dip in the Stock Worth Buying?
A Chinese company is reportedly manufacturing its own DUV systems.
Overview
ASML (NASDAQ: ASML) is a linchpin of the global semiconductor market. The Dutch company is the world's largest producer of lithography systems, which are used to optically etch circuit patterns onto silicon wafers. It's also the only producer of extreme ultraviolet (EUV) systems, which are required for producing the world's smallest and most advanced semiconductors.
All of the world's largest foundries -- including TSMC (NYSE: TSM), Samsung, and Intel (NASDAQ: INTC) -- use ASML's EUV systems to manufacture their top-tier chips. That steady demand makes ASML one of the most straightforward ways to profit from the semiconductor market's growth without investing too heavily in a single chipmaker. That's why ASML's stock has rallied more than 140% over the past 12 months as the AI market expanded.
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Originally published at www.fool.com.