Why ASML is a buy After Terafab Deal? - TradingKey

ASML, a leading semiconductor equipment manufacturer, is gaining attention due to its strategic partnership with Tesla and SpaceX’s Terafab project, which may require over 100 EUV lithography machines... Read original →

The Terafab initiative, if realized, would trigger a surge in EUV demand, accelerating ASML’s Low-NA EUV shipments ahead of High-NA ramp and forcing upstream materials—like photoresists and masks—to evolve toward extreme purity and precision. Geopolitically, U.S. export controls have already delayed some DUV deliveries; any Terafab-linked capacity expansion in Taiwan, China or Korea could invite stricter licensing, inflating costs and lead times. Nikon and Canon may push ArF immersion tools, but they remain irrelevant below 3nm, leaving ASML’s dominance unchallenged. Over the next 12–24 months, even with AI capex volatility, ASML’s irreplaceability at 2nm/1.4nm will lock in long-term commitments from TSMC, Samsung, and vertically integrated players, creating a dual moat of technological supremacy and capacity preemption that insulates its valuation from near-term noise.