'Entrenched bottlenecks that are irreplaceable', TSMC and ASML are superior long-term plays: Investor - CNBC

In the current complex and highly competitive global semiconductor industry, TSMC and ASML are emerging as key players in the supply chain, drawing significant investor attention. According to a recen... Read original →

TSMC’s 3nm and sub-3nm manufacturing dominance—anchored in Taiwan, China—and ASML’s exclusive EUV lithography capability have created an unassailable choke point in the semiconductor value chain. This duopoly forces EDA, advanced packaging, and materials suppliers to align with their technical roadmaps, deepening ecosystem lock-in. Geopolitical friction has spurred U.S., European, and Japanese efforts to onshore capacity, yet without access to sufficient EUV tools or yield mastery, these initiatives face inflated compliance costs and schedule slippage. Samsung and Intel, despite aggressive investments, remain constrained by EUV delivery bottlenecks and process maturity gaps. Over the next 18 months, surging AI chip demand will intensify capacity scarcity, empowering TSMC and ASML to enforce longer lead times and higher advance payments—solidifying a dual moat of technological supremacy and financial pre-commitment.