ASML is truly an international integration company. This type of integration requires deep expertise and tacit knowledge. But they don't manufacture most of their critical components.
The way most narratives make it sound is that ASML is out of this world. No, it is not. It is unique because it is the only one standing in the market, after a 2 decade period of investment.
It has a compelling moat, but that moat is not entirely technical (though it is substantially technical -- there is a lot of tacit knowledge on integration at that level of precision). It's the supplier network lock in, and sunk cost lockin from chipmakers.
ASML is truly an international integration company. This type of integration requires deep expertise and tacit knowledge. But they don't manufacture most of their critical components.
The way most narratives make it sound is that ASML is out of this world. No, it is not. It is unique because it is the only one standing in the market, after a 2 decade period of investment.
It has a compelling moat, but that moat is not entirely technical (though it is substantially technical -- there is a lot of tacit knowledge on integration at that level of precision). It's the supplier network lock in, and sunk cost lockin from chipmakers.