The Silent Kingmaker of AI: How ASML Holds the Keys to the Chip Kingdom

 

 

In the high-stakes race to dominate AI hardware, all eyes are on NVIDIA, AMD, and Intel. But while these tech titans battle for market share, there’s an unsung hero in the background pulling the real strings—ASML.

As the sole producer of Extreme Ultraviolet (EUV) lithography machines, ASML (https://www.asml.com/en) is the true gatekeeper of the semiconductor industry. Without its cutting-edge machines, even the most advanced chip designs remain just that—designs. And now, with the arrival of the next-gen TWINSCAN EXE:5000 (High-NA) EUV machines, the balance of power in AI chip manufacturing could be shifting.

Now having a view who all possess these machines.

 

Intel Corporation	TWINSCAN EXE:5000 (High-NA)
Taiwan Semiconductor Manufacturing Company (TSMC)	TWINSCAN EXE:5000 (High-NA)
Samsung Electronics	TWINSCAN EXE:5000 (High-NA)

 

This surely places Intel in the forefront for innovations. Since Intel fabricates and even designs unlike AMD and Nvidia, which are more of designers of the chips and rely on TSMC for its fabrication.

Simplifying lets understand the Fabless, Foundry and IDM in the chip world.

Fabless refers to semiconductor companies that design and develop chips but do not manufacture them. Instead, they outsource production to specialized manufacturers called foundries (such as TSMC, Samsung Foundry, or GlobalFoundries).

A foundry is a semiconductor manufacturing company that produces chips designed by other companies (typically fabless companies). These foundries operate large, highly specialized fabrication plants (fabs) that use advanced lithography and other techniques to manufacture semiconductor wafers.

An IDM (Integrated Device Manufacturer) is a semiconductor company that both designs and manufactures its own chips. Unlike fabless companies (which only design chips and outsource production to foundries), IDMs own and operate their own fabrication plants (fabs).

 

Company	Role	Description
NVIDIA	Fabless	Designs GPUs and AI chips; partners with foundries for manufacturing.
Qualcomm	Fabless	Designs mobile and wireless communication chips; relies on foundries for production.
Broadcom	Fabless	Designs a variety of semiconductor devices; outsources manufacturing to foundries.
Advanced Micro Devices (AMD)	Fabless	Designs CPUs and GPUs; utilizes external foundries for chip fabrication.
Apple	Fabless	Designs custom chips for its devices; manufacturing is outsourced to foundries.
Taiwan Semiconductor Manufacturing Company (TSMC)	Foundry	Specializes in manufacturing chips for fabless companies; does not design its own chips.
GlobalFoundries	Foundry	Provides manufacturing services for semiconductor companies; focuses on production without in-house design.
United Microelectronics Corporation (UMC)	Foundry	Offers semiconductor manufacturing services to various clients; does not engage in chip design.
Intel	Integrated Device Manufacturer (IDM)	Designs and manufactures its own processors and semiconductor products; operates its own fabrication facilities.
Samsung Electronics	IDM	Designs and manufactures a wide range of semiconductor products, including memory and logic chips; operates its own fabs and offers foundry services to external clients.
Texas Instruments	IDM	Designs and manufactures analog and embedded processing chips; maintains in-house production capabilities.
Micron Technology	IDM	Designs and manufactures memory and storage solutions; manages its own fabrication facilities.

 

 Why Intel Might Be the Dark Horse

For years, NVIDIA and AMD have dominated the AI chip discussion. However, Intel is now positioning itself as a serious contender by securing High-NA EUV machines. This is significant because:

• Intel both designs and manufactures its own chips, unlike AMD and NVIDIA, which rely on TSMC for fabrication.
• TSMC is stretched thin, serving multiple clients such as Apple, AMD, and NVIDIA, potentially delaying innovation for any one company.
• Intel can optimize chip design specifically for its fabrication process, potentially gaining efficiency and performance advantages.

 

ASML: The Biggest Winner in the Semiconductor Race

Regardless of which company dominates AI chip design, one thing is clear—ASML wins no matter what. As the only company in the world that produces EUV lithography machines, ASML is essential to every major chipmaker.

• The latest High-NA EUV machines cost around $400 million each, making them one of the most expensive pieces of semiconductor equipment ever built.
• Without ASML’s technology, no company can produce the most advanced chips—it’s the ultimate gatekeeper in the semiconductor race.

 

Investor Takeaways: Who Stands to Benefit?

From an investment standpoint, the semiconductor race is heating up. Here’s how key players are positioned:

🔹 NVIDIA – The current AI leader, but dependent on TSMC for fabrication.

🔹 AMD – Making strides but still reliant on TSMC.

🔹 Intel – The underdog with a chance to surprise if it leverages its High-NA EUV advantage effectively.

🔹 ASML – The ultimate winner, as every AI chip designer depends on its machines.

 

Conclusion: The Future of AI Chips

While the AI chip race is often framed as NVIDIA vs. AMD vs. Intel, the true enabler of the industry is ASML. The company’s EUV technology dictates which firms can stay at the cutting edge of chipmaking.

Intel’s early access to High-NA EUV machines could change the competitive landscape, but TSMC remains the dominant force in fabrication. As AI continues to evolve, the battle for faster, smaller, and more efficient chips will be defined by access to ASML’s lithography machines.

In the end, the semiconductor race is not just about who designs the best AI chips, but who has the technology to fabricate them—and ASML is the one company that holds the key.

Stay figgy,

The Figured Figs Team 🌱

Disclaimer: “This article is for informational purposes only and does not constitute financial, investment, legal, or tax advice. Readers are encouraged to consult a licensed professional before making any financial decisions."