Every time you use AI, you are depending on a 42-year-old Dutch company that makes the machines which make those chips possible. ASML, with its EUV lithography technology, is at the heart of this revolution. But as demand surges, so do concerns about competition and supply.

The most valuable company in Europe, worth over $530 billion, ASML maintains its monopoly with machines that cost upwards of $400 million each. Yet, a San Francisco startup, Substrate, founded by a protégé of Peter Thiel, has raised significant funds claiming it can build a rival lithography machine. Former ASML engineers in China have also reportedly partly reverse-engineered the technology.

Christophe Fouquet, ASML’s CEO since 2024, remains optimistic. ‘Did I see the AI explosion coming? No, but sitting in its midst every day can be surreal,’ he says. Despite such challenges, ASML is investing heavily to meet demand, ensuring its dominance for years to come.

‘The market will likely remain supply-limited for some time,’ Fouquet notes. ‘We are stepping up our entire supply chain and capacity to ensure we can meet the needs of our customers.’ His response to TSMC’s criticism that ASML’s latest machines are too expensive? ‘With high-NA EUV, you get 20% to 30% cost reduction on advanced layers,’ he argues.

Substrate and xLight may challenge ASML in the future, but Fouquet remains confident. ‘Wanting it and having it – that’s still a huge difference,’ he explains. The journey from concept to manufacturing is fraught with complexity, and ASML has spent decades perfecting its technology.