EUV (Extreme Ultraviolet) is the basis for tools that allow the patterning of fine lines in semiconductors as part of the photolithography process. As the light needed for defining these fine lines is less than the wavelength of traditional lithography processes, EUV’s shorter wavelength is the only tool available for producing semiconductors at 7um and below. There is only one manufacturer of such tools, Netherlands based ASML (ASML), so it is relatively easy to trace how EUV tools are selling and given that there are currently only two foundries that operate at 7um or less currently, tracing the units, which cost between $125m and $170m each, is possible.
ASML sold 31 EUV units in 2020, with a total of over 100 since shipments began in 2019. 31% of sales in that year were for EUV systems while in 2020 EUV represented 41% of sales or €4.5b ($5.466b US, up 60% y/y) and the company saw 4Q bookings for EUV reach $1.336b US. While the sales breakdown for 4Q 2020 represents all of ASML’s products, not just EUV, Taiwan represented 39% of 4Q sales and South Korea represented 31%, while China (12%), Japan, EMEA, and the US made up the remainder, which is similar to the full year breakdown of 36% for Taiwan and 31% for Korea. We note these numbers as Taiwan Semiconductor (TSM) and Samsung Electronics (005930.KS) are the two suppliers of 7um and smaller product currently, with China (under previous administration rules) unable to purchase such tools, given they might contain US made components or developed using US based software.
ASML expects to ship 40 EUV systems in 2021, which would generate €5.8b ($7.04b US), over a 28% increase, with both customers adding capacity, with the possibility that a change in policy could reduce pressure on ASML to prohibit sales to China. At times in 2020 the company stated that some of its products could be sold to China without violating US trade sanctions, bet an change in policy could open EUV sales to Chinese semiconductor foundries, who would likely be first in line to pay for the chance to purchase EUV systems that would help them move to 7um or lower nodes on the Mainland where 14um is the current limit.
ASML sold 31 EUV units in 2020, with a total of over 100 since shipments began in 2019. 31% of sales in that year were for EUV systems while in 2020 EUV represented 41% of sales or €4.5b ($5.466b US, up 60% y/y) and the company saw 4Q bookings for EUV reach $1.336b US. While the sales breakdown for 4Q 2020 represents all of ASML’s products, not just EUV, Taiwan represented 39% of 4Q sales and South Korea represented 31%, while China (12%), Japan, EMEA, and the US made up the remainder, which is similar to the full year breakdown of 36% for Taiwan and 31% for Korea. We note these numbers as Taiwan Semiconductor (TSM) and Samsung Electronics (005930.KS) are the two suppliers of 7um and smaller product currently, with China (under previous administration rules) unable to purchase such tools, given they might contain US made components or developed using US based software.
ASML expects to ship 40 EUV systems in 2021, which would generate €5.8b ($7.04b US), over a 28% increase, with both customers adding capacity, with the possibility that a change in policy could reduce pressure on ASML to prohibit sales to China. At times in 2020 the company stated that some of its products could be sold to China without violating US trade sanctions, bet an change in policy could open EUV sales to Chinese semiconductor foundries, who would likely be first in line to pay for the chance to purchase EUV systems that would help them move to 7um or lower nodes on the Mainland where 14um is the current limit.
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