ASML Tops Applied: Global Semiconductor Leader

In recent years, the global market has witnessed a substantial surge in demand for wafer fab equipment (WFE), leading to unprecedented revenue growth for manufacturers in this sector. Analyst Dan Nystedt reports a significant development in 2023, where ASML has surpassed Applied Materials, emerging as the world's foremost semiconductor equipment manufacturer.

As of 2023, ASML has reported revenues of $29.83 billion, outpacing Applied Materials with its $26.52 billion in revenue.

ASML's ascendancy in the wafer fab equipment manufacturing landscape can be attributed to several key factors. Firstly, ASML's revenue boost is attributed to the confirmation of earnings from 53 low-numerical aperture EUV Twinscan NXE devices, each valued at approximately $183 million, marking an increase from the 40 units reported in 2022. Additionally, the company has confirmed revenue from 125 deep ultraviolet (DUV) lithography devices, representing a notable surge from the 81 units reported the previous year. Secondly, owing to the implementation of export control regulations in September 2023, specifically targeting certain models, ASML was able to capitalize on sales of advanced DUV equipment to Chinese clients throughout most of the year. Conversely, Applied Materials experienced a certain degree of impact on equipment sales to Chinese clients due to the export rules introduced by the United States in October 2023.

While both companies operate within the semiconductor equipment manufacturing sector, their strategic focuses diverge. Applied Materials abstains from the production of lithography equipment, whereas ASML does not engage in the manufacturing of equipment for processes such as epitaxy, ion implantation, deposition, and selective material removal. In the contemporary semiconductor fabrication landscape, the operational dynamics hinge on equipment sourced from Applied Materials, ASML, KLA, and Tokyo Electron. Rather than direct competition, these companies exhibit a symbiotic relationship. For instance, the increasing sales of ASML equipment correspondingly drive demand for Applied Materials' equipment. Consequently, both entities are poised for substantial growth in the forthcoming years within the prevailing market conditions.