ASML: Is a New Chinese Competitor a Major Threat? (NASDAQ: ASML)
ASML is already planning a big production expansion over the next two years.
Overview
An unnamed Chinese company has started manufacturing a key piece of semiconductor fabrication equipment, according to a report that came out earlier this week from The Information. While the news negatively impacted shares of ASML (NASDAQ: ASML), the only company producing the kind of equipment reported, the truth is the market is likely overreacting to the threat.
The scale and technology of the unidentified company are far behind those of ASML, and the massive demand for chip manufacturing equipment can support the modest increase in supply from China.
Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
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