ASML Holding N.V. (ASML): history, ownership, mission, how it works & makes money

A Brief History of ASML Holding N.V. (ASML)

Founding and Early Years

ASML was founded in 1984 as a joint venture between the Dutch company Koninklijke Philips N.V. and Advanced Semiconductor Materials International (ASMI). The company focused on developing photolithography equipment used in the semiconductor manufacturing process. In its initial years, ASML made significant strides in introducing new technology aimed at improving the efficiency and capability of optical lithography tools.

Initial Public Offering (IPO) and Growth

In 1995, ASML went public on the Euronext Amsterdam stock exchange. By the end of the fiscal year 1995, ASML reported revenues of €1.1 billion, marking a pivotal point in its trajectory. The company continued to innovate, releasing its first deep ultraviolet (DUV) lithography machines in the late 1990s, which significantly enhanced the fabrication of microchips.

Technological Innovations

ASML introduced its Extreme Ultraviolet (EUV) lithography technology in 2006, which allows the production of smaller and more powerful chips. By 2018, ASML had shipped several EUV machines, including its first production systems. The revenue from EUV systems has been a substantial part of ASML's business, with an estimated €2.2 billion in 2020 from these systems.

Financial Performance

ASML’s financial performance has shown significant growth in recent years. In 2022, ASML reported revenues of €21.2 billion, with a net income of €5.2 billion. The company continued to see robust demand for its advanced lithography systems, driven by the increasing demand for semiconductors across various industries.

Market Position

As of 2023, ASML holds a dominant position in the lithography equipment market, accounting for approximately 90% of the market share for advanced lithography systems. The company’s closest competitors, Nikon and Canon, hold significantly smaller shares, making ASML the leading supplier globally.

Recent Developments

In 2023, ASML announced plans to expand its EUV production and R&D facilities in Veldhoven, the Netherlands, committing over €1.5 billion to capital expenditures. This expansion is intended to meet the increasing demand from semiconductor manufacturers investing in advanced chip technologies.

Partnerships and Collaborations

ASML has engaged in various strategic partnerships with major semiconductor manufacturers, including Intel, Taiwan Semiconductor Manufacturing Company (TSMC), and Samsung Electronics. These collaborations often involve joint investments to further the development of cutting-edge technologies in semiconductor fabrication.

Global Presence

ASML has a strong global presence, with offices and facilities spread across multiple countries, including the Netherlands, the United States, South Korea, Taiwan, and Japan. The company employs over 30,000 people worldwide, reflecting its extensive operational capabilities.

Future Outlook

The semiconductor industry is projected to grow at a compound annual growth rate (CAGR) of 8.4% from 2022 to 2030, primarily driven by emerging technologies such as artificial intelligence (AI), 5G, and the Internet of Things (IoT). ASML is strategically positioned to capitalize on this growth due to its advanced lithography technologies.

A Who Owns ASML Holding N.V. (ASML)

Shareholder Structure

The ownership of ASML Holding N.V. is comprised of a diverse group of institutional and individual investors. As of the latest report in 2023, the main categories of shareholders are as follows:

Major Institutional Shareholders

ASML has several significant institutional investors that hold a substantial percentage of shares. The top institutional shareholders include:

Geographic Distribution of Ownership

The ownership of ASML is also geographically distributed, reflecting its international investor base. The distribution is as follows:

Recent Share Price and Market Capitalization

As of October 2023, ASML Holding N.V. reported a share price of €644.30. The company's market capitalization stands at approximately €260 billion.

Dividends and Returns

ASML has a history of returning capital to its shareholders through dividends. The dividend information for 2023 includes:

Impact of Major Customers on Ownership

ASML's major customers like Intel and TSMC not only influence revenue but also shareholder sentiment. These companies' investment and purchases significantly affect ASML's stock performance and attractiveness to investors.

Conclusion

The ownership landscape of ASML is characterized by a strong presence of institutional investors, a diverse geographic distribution, and a consistent record of shareholder returns. The company’s performance is continually influenced by operations, customer relationships, and market dynamics.

ASML Holding N.V. (ASML) Mission Statement

Core Mission Statement

ASML's mission is to enable its customers to create the next generation of microchips by providing the world's most advanced lithography systems. This commitment is underscored by their focus on technological innovation and excellence.

Vision Statement

ASML envisions a world where the power of technology transforms lives. They aim to push the boundaries of technology to support industries that rely on semiconductor manufacturing.

Values and Ethics

• Innovation: ASML strives to lead in technological advancements.
• Customer Focus: They prioritize customer needs in every aspect of their operation.
• Sustainability: Commitment to environmentally responsible practices.
• Integrity: Upholding ethical standards in business practices.

Financial Performance Indicators

ASML has consistently shown strong financial results. Below is a table summarizing essential financial data from the fiscal year 2022:

Strategic Goals

ASML has outlined several strategic goals to enhance its mission, including:

• Investing in research and development, targeting over 20% of revenue.
• Expanding production capacity to meet increasing demand for advanced lithography systems.
• Enhancing customer support through improved service offerings.
• Driving sustainability initiatives with a goal to reduce carbon footprint by 25% by 2025.

Market Position and Competitiveness

ASML holds a dominant position in the lithography equipment market, with a market share of approximately 90% in extreme ultraviolet (EUV) lithography technology as of 2022. The company's strategic partnerships with major semiconductor manufacturers such as Samsung and Intel enhance its competitive edge.

Recent Developments

In 2023, ASML announced the introduction of its latest EUV system, the NXE:3800C, which offers improved productivity and efficiency, supporting the industry's transition to 5nm and 3nm technology nodes.

Corporate Social Responsibility

ASML employs a comprehensive approach to corporate social responsibility, focusing on:

• Employee welfare and diversity.
• Community engagement and education initiatives.
• Reducing environmental impact through sustainable practices.

How ASML Holding N.V. (ASML) Works

Business Model

ASML operates in the semiconductor industry as a leading supplier of photolithography equipment used in the manufacturing of integrated circuits. The company’s revenue is primarily derived from:

• Equipment sales
• Service and maintenance contracts
• Software and upgrades for existing machines

Financial Overview

In 2022, ASML reported revenue of €21.0 billion, an increase from €18.6 billion in 2021. The net income for 2022 was €5.9 billion, up from €5.5 billion the previous year.

Technology and Innovation

ASML is renowned for its advanced Extreme Ultraviolet (EUV) lithography machines. As of 2023, the company has shipped over 360 EUV systems, which are essential for producing chips at nodes of 7 nanometers or smaller.

Global Reach and Market Position

ASML operates globally with a significant presence in:

• Europe
• Asia, particularly Taiwan and South Korea
• North America

The company holds approximately 60% of the global market share for photolithography equipment.

Supply Chain and Manufacturing

The manufacturing of ASML’s lithography machines involves over 1,800 suppliers across various regions. The main manufacturing facility is located in Veldhoven, Netherlands.

Employee and Workforce

As of the end of 2022, ASML employed approximately 38,000 people worldwide. The R&D department comprises around 10,000 employees, reflecting ASML's commitment to innovation.

Research and Development Expenditure

ASML invests significantly in R&D. In 2022, the R&D expenditure was approximately €3.2 billion, representing about 15% of the company’s total revenue.

Customer Base

ASML's primary customers include major semiconductor manufacturers such as:

• Taiwan Semiconductor Manufacturing Company (TSMC)
• Samsung Electronics
• Intel Corporation

Recent Developments

In 2023, ASML announced plans to increase the production capacity of EUV systems to meet the growing demand from the semiconductor industry. The forecast for shipment in 2023 is approximately 60 EUV systems.

Market Capitalization

As of October 2023, ASML's market capitalization was approximately €230 billion, making it one of the most valuable companies in the semiconductor sector.

Key Financial Metrics

How ASML Holding N.V. (ASML) Makes Money

Revenue Streams

ASML primarily generates revenue through the sale of advanced photolithography equipment used in the semiconductor manufacturing process.

• Systems Revenue: This is the largest segment of ASML's income, representing approximately 73% of total revenue in 2022.
• Services Revenue: This segment includes service agreements, spare parts sales, and upgrades, contributing around 27% of total revenue for the same period.

Sales Breakdown by Technology

The company's product portfolio consists of several key technologies:

Geographical Revenue Distribution

ASML's revenue is well-distributed across various global markets:

Customer Base

ASML serves major semiconductor manufacturers:

• Taiwan Semiconductor Manufacturing Company (TSMC)
• Samsung Electronics
• Intel Corporation
• GlobalFoundries

Financial Performance Indicators

ASML has shown strong financial performance in recent years:

Future Revenue Projections

A projected growth rate for ASML is anticipated:

• Estimated compound annual growth rate (CAGR) for systems revenue: 20% from 2023 to 2025.
• Projected EUV systems sales: 20 units in 2023.

Investment in R&D

ASML invests heavily in research and development to maintain its market leadership:

Partnerships and Collaborations

ASML collaborates with various stakeholders to enhance its technology offerings:

• Partnerships with high-tech companies for joint development initiatives.
• Collaboration with universities for cutting-edge research.