The Zhitong Finance App learned that the Netherlands-based lithography giant ASML.US (ASML.US) is finally weighing various options to expand its domestic business in the Netherlands. Not long ago, the Dutch government promised to invest about 2.5 billion euros (about 2.7 billion US dollars) in key expenses such as infrastructure and talent education in the region where the company is headquartered, in an effort to double the number of local Dutch employees and increase efforts to provide housing and other infrastructure. According to information, Asmack has signed a letter of intent, promising to continue developing near its headquarters. As early as March, the Dutch government set up a “task force” with the aim of making every effort to keep Asmack in the Netherlands.

Asmack, Europe's largest market capitalization company headquartered in Veldhoven, the Netherlands, said in a statement on Monday that the company signed a letter of intent with the Eindhoven region in the southern Netherlands to explore expansion near its Dutch headquarters. Asmack spokesman Monique Mols said in an emailed statement that the final decision would depend on resolving several “key issues.”

According to the latest statement issued by Asmack, Asmack wants its core production activities in the Netherlands to be “as close as possible to the existing large factory in Veldhoven.” The statement also said that Asmack very much welcomed the Dutch government's recent investment commitments.

However, Asma spokesman Monique Mols said that before making binding commitments, some unresolved issues include grid access, the scale of housing supply, and the specific conditions of road network access.

The “national treasure” company Asmack wants to leave; the Dutch government is in a hurry

After local media reported that Dutch lithography giant Asmack was considering expanding into overseas markets, the Dutch government quickly set up a “task force” and initially announced this expenditure last month. The relevant Dutch authorities called this urgent action by the “Task Force” “Operation Beethoven” to ensure that global lithography giant Asmack does not move its business to other countries due to anti-immigration policies that may be implemented by right-wing forces in the Netherlands.

The Dutch political party advocating an anti-immigration policy won a big victory in the 2023 Dutch general election, so the Dutch government's “obvious right turn” aroused Asmer's alarm. Asmack CEO Winnink warned in January of this year that Asmack is highly dependent on skilled foreign workers and highly qualified foreign workers, and said that potential anti-immigration policies may prompt Asmack to move out of the Netherlands.

According to information, in recent years, the Netherlands has faced a situation where many large enterprises have left the Netherlands due to worsening business issues such as tax laws. For example, the world's top companies such as Shell (Shell) and Unilever (Unilever) eventually left the Dutch headquarters. Therefore, the Dutch government's “Operation Beethoven” led by Prime Minister Mark Rutte aims to prevent a similar situation from happening again, ensure that Asmack, a key technology enterprise for the Netherlands, remains in the Netherlands and contributes to the country's economic and technological development.

Asmack from the Netherlands is the world's largest manufacturer of lithography systems. The world's most precise lithography machine produced by Asmack can be described as playing the most important role in the chip manufacturing process. Asmack is the world's only supplier of the most advanced extreme ultraviolet (EUV) lithography machines used by TSMC, Samsung, and Intel to manufacture high-end chips.

If chips are the “pearl in the palm of the hand” of modern human industry, then a lithography machine is a necessary tool to produce this “pearl”. More importantly, Asmack is the world's only supplier of the most precise EUV lithography equipment required for global chip manufacturers to manufacture chips with the most advanced processes, such as 3nm, 5nm, and 7nm chips.

For the 2nm and below node technology being developed by TSMC, the Asmack High-NA EUV lithography machine is critical. Compared to the standard EUV lithography currently produced by Asmack, the main difference is that it uses a larger numerical aperture. High-NA EUV technology uses a 0.55 NA lens, which can achieve a resolution of 8 nm, while the standard EUV technology uses a 0.33 NA lens. Therefore, this new NA technology can print smaller characteristic sizes on the chip, which is essential for the development of process technology for 2nm and below chips.

A “new era” for lithography giant Asmack is coming

Although Asmack's latest performance sends mixed signals of mixed demand for lithography machines, it is undeniable that after Asmack and the “founders” of chips, which jointly created the most important underlying hardware for the development of human technology, experienced the PC era and smartphone era, which can be called the “golden age,” starting in 2024, they may usher in a new “golden age” in this wave of AI deployment around the world.

According to information, Asmack plans to double its overall production capacity of lithographers by 2030 to meet the huge chip production capacity required for the booming development of generative artificial intelligence such as ChatGPT and Sora — manufacturing chips is inseparable from core semiconductor manufacturing equipment such as lithographers. Asmack expects the chip industry's demand for lithography machines to soar as AI penetrates deeply into human society.

According to the latest statistics from the American Semiconductor Industry Association (SIA), the total sales volume of the global semiconductor industry in February 2024 was about 46.2 billion US dollars, up 16.3% from the 39.7 billion US dollars in February 2023. The year-on-year increase in sales in February was the largest percentage since May 2022. TECHCET recently released a major forecast report. It is expected that continued strong demand for AI chips in 2024 will lead the global semiconductor market into a new upward cycle. TECHCET predicts that sales in the semiconductor industry are expected to increase sharply by 12% in 2024, followed by a sharp increase of 21% in 2025, stimulated by demand for AI chips and a wider range of chips. TECHCET predicts that the global semiconductor market is expected to break the trillion dollar mark in 2031 or 2032.