Why The World Relies On ASML For the Machines That Print Chips/Wafers

[Pitboy64]

Summary

A video posted today (March 23, 2022) by CNBC.
A tour through and short documentary about ASML (Advanced Semiconductor Materials Lithography) company, and its manufacturing site in The Netherlands.
This is the company that builds the machines, that TSMC, intel, Samsung, Micron and SK hynix all use exclusively, to print the silicone chips we rely on.
These machines are over $200 million each ... and those are the cheap ones.

What makes it 'news' is because its fresh, so how they are dealing with demand for chips via supply shortages, due to Covid ... etc, including all the new fabs planned in America and elsewhere ... very timely, considering they are only ones with the machine to put in these fabs.  That makes it news.

 

Quotes

Quote

 

In a Dutch factory, they make the revolutionary chipmaking machine the whole world has come to rely on. It takes months to assemble, and only one company in the world knows how, using exploding molten tin, and light so narrow it’s absorbed by air.

 

My thoughts

We all hold to high regard the technological ability of the companies that make the Chips we all use, but this piece shows us the machine itself behind the process.  The fact that CNBC received access to inside ASML, and learned in detail what they do to build these machines, makes for a very watchable video for anyone interested in technology.  Stick around till the end where they discuss the next level of development, that's just around the corner.

 

Sources

 

 

[Dutch_Master]

It's probably a Good Thing^(TM) this is a Dutch company and not in China. Not that the Chinese aren't trying to get hold of the underlaying tech, ASML is a frequent (read as: daily) target for state-directed hacker groups (usual suspects: China, Russia, Iran, North Korea and undoubtedly numerous other oppressive regimes), as well as criminal groups who hack for money alone. By nature, ASML employs some very tech-savvy folk and their IT Dep't is no exception

 

The price tag on these machines is one reason, amongst a fair few others, why setting up a wafer-fab is so extraordinary expensive. Mind, should you order one today, you'd probably expect delivery some time in 2024-ish. They're build to order and it's not exactly an IKEA flatpack self-assembly kind of tech

[dizmo]

I find it odd that only one company makes these machines. Seems...wrong. What if, by some fluke chance, their data gets destroyed? There goes the ability to make those machines. 

[leadeater]

1 hour ago, Dutch_Master said:

They're build to order and it's not exactly an IKEA flatpack self-assembly kind of tech

Good, because an IKEA would be harder lol

 

ASML equipment assembly/construction I don't think has caused relationship breakups

[Levent]

This is a great video, thanks for sharing. Learned couple of things.

[williamcll]

2 hours ago, dizmo said:

I find it odd that only one company makes these machines. Seems...wrong. What if, by some fluke chance, their data gets destroyed? There goes the ability to make those machines. 

That's what happens to every monopoly. 

 

Will it change? Of course not. 

[TheReal1980]

Did they not even include Hiroo Kinoshita when talking about EUV?

 

Anyway, I would recommend Asianometry on Youtube, he does a much better job on his own explaining everything.

 

 

 

 

 

[Justaphysicsnerd]

5 hours ago, dizmo said:

I find it odd that only one company makes these machines. Seems...wrong. What if, by some fluke chance, their data gets destroyed? There goes the ability to make those machines. 

*...Dark Age of Technology and STC vibes intensifies..*

[Spotty]

While it appears interesting it does seem that this is more of a documentary on the industry, rather than "news". For this reason it has been moved to General Discussion.

[tkitch]

8 hours ago, dizmo said:

I find it odd that only one company makes these machines. Seems...wrong. What if, by some fluke chance, their data gets destroyed? There goes the ability to make those machines. 

the amount of tech and research that goes into designing something that works at the single-digit micron level is....  mind bogglingly high.

 

getting into that field is a multi-billion dollar investment, with no guarantee of success or profitibility for a long ass time.  The only way a company would try to replicate it, most likely, would be if they were bankrolled by a government somewhere.  

[12345678]

6 hours ago, williamcll said:

That's what happens to every monopoly. 

 

Will it change? Of course not. 

And for safety/security issues they keep killing competition.. 

[williamcll]

1 hour ago, 12345678 said:

And for safety/security issues they keep killing competition.. 

a thin velied excuse using politics.

[dizmo]

9 hours ago, tkitch said:

the amount of tech and research that goes into designing something that works at the single-digit micron level is....  mind bogglingly high.

 

getting into that field is a multi-billion dollar investment, with no guarantee of success or profitibility for a long ass time.  The only way a company would try to replicate it, most likely, would be if they were bankrolled by a government somewhere.  

It'd make sense for the US Government to dip their toes in. That kind of money is simply a drop in the bucket. I'm honestly rather surprised they haven't put money forth for someone to pick it up as of yet.

[cmndr]

19 hours ago, Dutch_Master said:

It's probably a Good Thing^(TM) this is a Dutch company and not in China. Not that the Chinese aren't trying to get hold of the underlaying tech, ASML is a frequent (read as: daily) target for state-directed hacker groups (usual suspects: China, Russia, Iran, North Korea and undoubtedly numerous other oppressive regimes), as well as criminal groups who hack for money alone. By nature, ASML employs some very tech-savvy folk and their IT Dep't is no exception

 

The price tag on these machines is one reason, amongst a fair few others, why setting up a wafer-fab is so extraordinary expensive. Mind, should you order one today, you'd probably expect delivery some time in 2024-ish. They're build to order and it's not exactly an IKEA flatpack self-assembly kind of tech

Do keep in mind that while they have healthy margins, they aren't at Intel levels of profitability.

Their net profit margin is around 35% vs ~60% for Intel.

Even if you set ASML's margins to 0 it wouldn't change the cost of building a new foundry THAT much.

The big issue is it's hard and expensive to get EVERYTHING right when you're dealing with highly intricate machinery with tight tolerances.