asml stock jumps ahead of key meeting with tsmc

2025-01-06 asml

Taipei, Monday, 6 January 2025.
ASML Holding’s stock price surged by 5% in pre-market trading, reaching $750.2, following news of an upcoming strategic meeting with TSMC executives. This meeting, set to feature ASML’s CEO Christophe Fouquet and senior executives, will focus on TSMC’s technological roadmap and procurement plans. ASML aims to gain insights into TSMC’s future strategies and hopes to accelerate orders for its advanced High NA EUV lithography machines, valued at approximately $3.8 billion. This development highlights the growing anticipation of collaboration between two of the semiconductor industry’s giants, as ASML seeks to solidify its position in the market with cutting-edge technology. The meeting’s timing coincides with TSMC’s ongoing efforts to expand its semiconductor production capabilities, further boosting investor confidence in both companies.

Market reaction and broader tech rally

The surge in ASML’s stock is part of a broader rally in semiconductor stocks [6]. Other European chip manufacturers also saw significant gains, with ASM International rising 6.2% and BE Semiconductor Industries up 5.4% [6]. TSMC’s shares simultaneously reached an all-time high with a 4.65% increase [6]. The positive market sentiment was further bolstered by Foxconn’s announcement of record fourth-quarter revenue [6].

Strategic importance of High-NA EUV technology

ASML’s focus on High-NA EUV technology comes after its milestone shipment of the first EXE:5000 machine to Intel in December 2024, valued at $400 million [5]. This advanced technology is crucial for producing chips with process nodes of 2nm and below [5]. TSMC currently achieves a 55% yield rate on its 3nm production [5], making the potential adoption of High-NA EUV systems particularly significant for future manufacturing capabilities.

TSMC’s expansion plans

The meeting occurs amid TSMC’s ambitious growth strategy. The company is planning to construct two new wafer fabs in Kaohsiung in 2025 [4], while also progressing with its Arizona facility, which will receive $6.6 billion in CHIPS Act funding [4]. These expansions align with increasing global demand for advanced semiconductor technologies, particularly in AI applications [2][3].

Industry outlook and market position

Analysts project a 20% increase in the semiconductor market for 2025 [4]. TSMC maintains its industry leadership with a 52.1% market share [5], while securing significant commitments from key customers. Apple has reserved all of TSMC’s 3nm production capacity for 2025 [5], demonstrating strong demand for advanced chip manufacturing capabilities.

Bronnen

TSMC ASML