ASML remains the undisputed king in an extraordinary chip year: 'This is only the beginning'
It's freezing cold in Veldhoven, but inside ASML's walls it feels like a ripping summer has just exploded. Anyone who's driven through the Brainport region over the past few weeks has seen it not only in the cranes jutting out above the new buildings โ the numbers from Asia don't lie. The hunger for chips is back, and not just a little bit. Samsung, one of the biggest players in the world, has jacked up prices on its DDR5 and HBM memory by a whopping 30 per cent. That's no mere correction โ that's a statement.
For the real market insiders, this has been clear for a while. The 'dip' earlier this year was nothing more than holding your breath before a massive dive. The South Korean giant's profit figures have absolutely exploded, driven by a demand for memory chips that simply can't be satisfied. And guess who's the only outfit on Earth that supplies the most cutting-edge machines to make those things? Exactly. That's where ASML has its golden grip.
From ASML Building 3 to the Eindhoven marathon: a region built for the future
It's almost symbolic. On one side of Eindhoven, thousands of runners are preparing for the Marathon Eindhoven, an event that turns the city upside down every year. It's the ultimate metaphor for endurance. On the other side, a few kilometres away in Veldhoven, ASML Building 3 is rising. This isn't just any office block; it's a fortress of innovation, built to keep answering demand for the next ten years. Call it the tech marathon.
The contrast with what's happening elsewhere in the world is massive. While regions like the Middle East are caught up in distracting conflicts โ I'm thinking of groups like the Arab Struggle Movement for the Liberation of Ahwaz that have completely different priorities โ the sandy soil of North Brabant is simply too fertile for technology. There, the fight isn't over ideology, but over nanometre switches and light intensity. No gunfire, just wafers being exposed at the speed of light.
What I find so bizarre about ASML is how un-Dutch it actually is. We're a nation of trade, water management, and 'just act normal'. And yet in our backyard sits a company that dictates the entire global semiconductor order. Without the EUV machines from Veldhoven, no high-end data centre or top-tier smartphone runs. That's not showing off โ that's just reality.
Why this autumn will decide everything for the chip giant
Let's have a look at the numbers coming in now. Samsung's profit explosion isn't the result of one-off windfalls. It's the new normal. AI models gobble up HBM memory like it's free beer at a Brabant fair. The 30 per cent price hike is a direct result of that scarcity โ and that's with the Koreans' production lines already running flat out.
This is the point where I want you to pause and consider the supply chain.
- Step 1: Samsung can't make its chips fast enough.
- Step 2: To make more, they need the most advanced lithography machines.
- Step 3: Those machines only come from Veldhoven.
- Step 4: ASML can literally set the price for the future of AI and computing.
That position of power is unique. And while the construction of Building 3 progresses, I'm looking forward to the Marathon Eindhoven. They seem like two separate worlds, but it's exactly the same principle: you can't win if you haven't trained for the long haul. ASML understood that, long before the rest of the world realised that chips are the new gold. The fourth quarter of 2024? It's going to be a party. Get your running shoes ready โ and your wallet.