Taiwan doubles down on chips: ASML's $81.1 million boost approved

2025-04-30 asml

taipei, Wednesday, 30 April 2025.
Taiwan’s Ministry of Economic Affairs greenlit a substantial NT$2.62 billion (US$81.1 million) investment by ASML into its Taiwanese operations. The investment aims to strengthen Taiwan’s crucial position in the global semiconductor supply chain. ASML’s capital injection will specifically bolster semiconductor-related manufacturing on the island. This move underscores Taiwan’s commitment to remaining a key player in advanced chip production and supporting the industry’s growth.

ASML’s strategic investment

ASML’s investment will go to Cymer, Inc., focusing on the installation, sales, and maintenance of laser light source equipment and semiconductor components [1][3]. This strategic move allows ASML to strengthen its support for advanced chip manufacturing in Taiwan [1]. The investment highlights ASML’s commitment to providing essential equipment and services to its customers in the region [3]. It also signals confidence in Taiwan’s semiconductor industry and its continued growth [1].

Broader investment landscape

The Ministry of Economic Affairs (MOEA) approved six investment cases, including ASML’s capital injection [1][3]. Sumitomo Corp. also received approval for a NT$2.27 billion investment in its Taiwan subsidiary to expand its semiconductor materials and electronic components business [1][3]. Stonepeak Oceanview (Cayman) Holdings Co. plans to invest NT$8.75 billion in wind power generation [1]. Acer Inc., Yageo Corp., and ASMedia Technology Inc. are making significant outbound investments [1][3].

Market position and technological leadership

ASML is a dominant player in the EUV lithography market, essential for manufacturing advanced chips [7]. ASML’s CFO, Roger Dassen, acknowledges China’s progress in developing lithography technology [7]. He believes it will still take considerable time for China to produce advanced EUV lithography machines [7]. ASML’s 2024 net sales reached €28.263 billion, with a net profit of €7.571 billion; China was its largest market, contributing €10.195 billion [7].

Stock implications and industry outlook

ASML’s Q1 net profit increased by 0.924 [8]. The company’s strong performance indicates the semiconductor industry’s high profitability [8]. The rising demand for semiconductors, driven by AI development, requires companies to innovate [8]. ASML’s increased investment in Taiwan could further solidify its market position [1]. It may also influence the global semiconductor equipment market, potentially benefiting related companies [8].

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