A Look at Top Chip-Making Equipment Manufacturers

In the microscopic realm of semiconductors, a select few companies reign supreme. These are the masters of the tools that craft the brains of our modern world — the chip makers. Let’s take a closer look at three giants in this field: ASML, Applied Materials, and Tokyo Electron.

ASML: The Dutch heavyweight holds a near-monopoly on Extreme Ultraviolet (EUV) lithography machines, a crucial step in etching circuits onto silicon wafers. This technological dominance translates to market leadership and hefty profit margins. However, being a single-source supplier for a key technology carries inherent risk, and ASML needs to diversify its offerings to ensure long-term stability. Stock performance has been stellar, reflecting its current dominance, but future growth hinges on its ability to crack other parts of the chipmaking chain.

Applied Materials: This American giant is a one-stop shop for chip fabrication, offering a plethora of equipment from deposition systems to etch tools. Its strength lies in its broad portfolio and deep expertise in materials science. However, its sheer size makes it less nimble compared to its competitors, and recent supply chain disruptions have…