ASML Holding (ASML) Is The “New OPEC” Of Chips, Says Newsletter - Insider Monkey

Recently, a newsletter titled '1776 Moment' referred to ASML Holding N.V. (ASML) as the 'new OPEC' of the chip industry, highlighting its pivotal role in global semiconductor manufacturing. ASML is th... Read original →

Labeling ASML as the 'new OPEC' stems from its unchallenged monopoly over EUV lithography—the only viable path to sub-7nm nodes. This dominance forces foundries like TSMC, Samsung, and Intel into multi-year capacity pre-commitments, while AI chip designers must align architectures with constrained manufacturing access. Geopolitical export controls, particularly U.S.-led restrictions on sales to China, have already inflated compliance costs and delayed DUV shipments; further curbs on EUV would extend lead times and inflate capex globally. Rivals Nikon and Canon remain technologically locked out of EUV due to fundamental physics barriers, relegating them to mature-node niches. Over the next 12–24 months, ASML’s pricing power will intensify, yet systemic supply concentration may accelerate state-backed alternatives—such as IMEC’s High-NA collaborations with Tokyo Electron—planting seeds for a fragmented, multipolar lithography ecosystem.