Why The World Relies On ASML For Machines That Print Chips

In a Dutch factory, there’s a revolutionary chipmaking machine the whole world has come to rely on. It takes months to assemble, and only one company in the world knows how: Advanced Semiconductor Materials Lithography.

CNBC got an exclusive tour inside ASML’s cleanrooms to see how these $200 million EUV systems print minuscule designs on advanced microchips using exploding molten tin, the flattest surface in the world, and light so narrow it’s absorbed by air.

Once ASML is done building and testing an EUV lithography machine, it’s so big that it needs to be disassembled and loaded on 20 trucks or three 747s for shipment. Only five customers can afford EUV machines, the biggest being TSMC, Samsung and Intel - and ASML export controls keep ASML from sending any to China.

Here’s a rare, inside look at how nearly 800 suppliers come together to create the technology required to print every advanced chip powering the digital world, from data centers to iPhones.

Chapters:

00:00 -- Intro
1:58 -- Dutch company with U.S. roots
6:18 -- How lithography works
8:52 -- How EUV revolutionized chipmaking
11:24 -- Why there’s no competition
14:45 -- Geopolitical risks and what’s next (edited)

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Why The World Relies On ASML For Machines That Print Chips

[JeroenBouwens]

The incredible level of accuracy these machines achieve cannot be overstated. Saying it's "like hitting a coin on earth from the moon with a laser" is a nice analogy and to get an idea of the engineering challenges involved, consider this: If your laser on the moon moves a microdegree (one-millionth of a degree), you will miss your coin by 10 meters. Not only do ASML's machines hit this coin, they do it over and over again, 24/7, millions of times a day, with people walking around, trucks driving by outside, changing temperatures etc. At that scale and level of accuracy EVERYTHING influences your machine. That is ASML's real technical achievement.

[aaronfirtz]

Exciting times for semiconductor stocks TSMC, AMD and NVDA. which are all experiencing a surge in value. It's interesting to watch the competition develop, given these stocks are major contributors to Al chip growth. On the increase of my personal holdings, I've witnessed amazing impact on my shares.

[lessdatesmoreonmyplates]

This is truly insane, I can't even imagine the level of pride and satisfaction the engineers working at ASML have.

[DHAiRYA]

ASML has 100% market share in advanced photolithography machines. Domination

[AmrishKelkar]

Worked in the semiconductor industry in silicon valley for 13 years before leaving in 2020. I remain convinced that chip manufacturing is by the far the greatest scientific achievement in terms of what humans are capable of building. It is just reality defying that we are able manufacture features that measures several tens of nanometers across (not one, not two -- but billions of them on a chip the size of your thumbnail, and millions of such chips), and then have the whole thing do what we actually set out to do, consistently, that too! The semi industry is chock full of extremely intelligent people (absolute nerds) who are hard to find and don't come by that easily. Every day was extremely challenging and stressful, but very very rewarding because I got to address technical problems that only a few get the chance to solve.

[d.kersten]

@ASML is a good company to work for. When I started, the first Twinscan was being created with 300mm wafers and a dual stage which allows simultanious measurement of one wafer and doing the actual lithography on the other one. Customers were so eager to have a machine that could handle 300mm wafers, that the first machines were single stage Twinscans. These 22 years have been incredible and more (Moore) is to come!

[einstijn]

Started R&D in 2000, didn't even know if they would succeed in 2015, and delivered in 2019
Now that is some courage, confidence and tenacity

[naguoning]

ASML in the Netherlands and TSMC in Taiwan... bizarre that 2 not so huge countries, 2 companies basically dominate the supply of chips that power everything that is modern.

[guitarmeggedonit]

I work doing engineering drawings for installing these machines in chip factories. They are incredible. Hats off to the scientists and engineers building them!

[markknoop]

38 years in business and 97% of machines sold is still operating 😤🤯
There are some industries that don't get those number's.

[py]

Can you believe the Dutch? Such a small nation. In the top twenty of almost anything in the world, from sport to education, agriculture, trade, technology... Its incredible.

[davidbosak]

I just want to recognize all the people on this comment board (and everywhere) who have worked in this industry and contributed to this amazing technology. You have literally changed the course of human history, and made everyone's lives so much better. Thank you for your intelligence, perseverance and hard work!

[jascrandom]

ASML is one of the best examples of a "Hidden Champion".

[mattyktatermattyktater]

Incredible. I'm an engineer for medical lasers and thought that I had the be incredibly precise with my optical alignments. This is magnitudes more precise.

[einstien]

This truely shows the sheer inginuity of engineers. Mad respect for being the very driving force of society.

[moosefactory]

It is so weird that a company I never heard of is so incredibly important to the advancement of technology on the world stage. It makes me wonder what advancements will take place by the end of this century, My great niece who is just an infant right now most likely live long enough to witness so many incredible changes in her life.

[movaxh]

These machines are beyond crazy. It is like Manhattan Project, Space Shuttle and Large Hadron Collider combined in terms of complexity. Making things precise once is one thing, making it work non-stop, be thermally stable, and repeatably accurate is few levels harder. Optical system, mechanics, thermals, cycling, positioning are quite crazy.

[spinningjenny]

With everything going on in the world, i think this is the peak of human performance and intelligence. Machines which are so complex that only the best mathematicians, physicists and engineers know how to develope and build the damn thing. Only for us to use the chip to watch a movie on our smartphones

[NKhalaileh]

I think more credit should be given to Carl Zeiss for creating the EUV light in the first place. They provide the Heart of this fascinating machine.

[JongJande]

One of the reasons for their success next to their technical capabilities is the fact tha AMSL works together with other companies worldwide. I think AMSL can be regarded as an example to the whole world how we should work together to our common benefit instead of making war and loose everything.