ASML's EUV Dominance Shaped by Significant US Research and Over $200 Million Intel Investment

A recent social media post by Bojan Tunguz has sparked discussion regarding the origins of ASML Holding N.V.'s foundational technology. Tunguz stated, > "Thesis is all largely true (and lamentable), but it’s also true that the most important European tech company - ASML - was created out of research done in the US that was impossible to properly make profitable here." This highlights a nuanced perspective on the Dutch semiconductor giant's rise to global prominence.ASML, currently Europe's second most valued tech company with a market capitalization of approximately $264 billion as of November 2024, was officially founded in 1984. It began as a joint venture between Dutch electronics giant Philips and chip-machine manufacturer Advanced Semiconductor Materials International (ASMI) in the Netherlands, commercializing wafer stepper technology developed at Philips Research. The company became fully independent in 1995, establishing its headquarters for research, development, and manufacturing in Veldhoven, Netherlands.However, the development of Extreme Ultraviolet (EUV) lithography, ASML's most critical technology, saw substantial investment and research from the United States. In 1992, Intel invested a significant sum of US$200 million into lithography research, specifically targeting EUV development. This effort was part of a broader US government initiative, which, from 1996, saw Department of Energy laboratories like Lawrence Livermore and Sandia establish partnerships to conduct foundational research in optics and EUV-related fields.These US-led research alliances, heavily funded by Intel and other semiconductor companies, laid crucial groundwork for EUV. ASML later emerged as the primary entity capable of commercializing this complex technology, integrating these advancements into its manufacturing processes. By 2012, Intel, Samsung, and TSMC collectively invested 5.229 billion euros into ASML, securing priority supply rights and solidifying the company's position.Today, ASML holds a near-monopoly as the sole supplier of advanced EUV photolithography machines, which are indispensable for manufacturing the most cutting-edge chips. This unique market position underscores the critical role of both its Dutch origins and the substantial US research and financial backing that propelled its core technology to commercial viability.