ASML is manufacturer of lithography equipment, which is used to manufacture chips. Lithography is used to print patterns on silicon wafers and is the key technology to shrink chips and in doing so, improve the performance and price of chips. Rapid innovation in the tech sector ensures that demand for new and more advanced machines remains high. Yet the industry is also highly cyclical, as chip manufacturers tend to invest disproportionately more in good times and the other way around.
ASML was founded in 1984 as a JV between ASMI and Philips. In 1995, ASML became a fully independent company. The company is based in Veldhoven, the Netherlands.
ASML's high-tech printing machines enable chip makers to increase the functionality of their chips, while reducing the costs and using less energy and fewer natural resources per function on a chip. The power, cost and time required for every computation on a digital electronic device can be reduced by shrinking the size of transistors on chips. ASML's machines are market leading in this respect.
ASML has incorporated the circular economy into its business principles. Its systems have a modular design, which allows for reuse and upgrades. ASML refurbishes and upgrades its older lithography systems to a higher performance level to extend their lives. ASML has a range of initiatives to increase material recycling and reduce waste. The company targets to cut the amount of waste per revenue by 50% by 2025.