Industry fears of exacerbating chip shortages following fire at ASML – Techtime plant

by time news

January 6, 2022

ASML is the only company in the world that produces EUV lithography machines, which are necessary for production below 7 nm. In the coming days, the company will update on the effects on the production plans

Pictured above: ASML EUV lithography system at Intel’s manufacturing plant. Photo: Intel

Company ASML The Dutchwoman, which manufactures lithography machines for the chip industry, announced that a fire broke out at the company’s factory in Berlin on Monday. The fire was extinguished with no casualties, and the company is now conducting an inspection to assess the extent of the damage and its implications for production plans. ASML has promised to update in the coming days regarding the findings.

ASML is the largest manufacturer of lithography machines in the world and dominates about 84% of the market. Moreover, its importance to the current chip industry stems from its being the only supplier in the world of ultraviolet spectrum (EUV) lithography machines, the necessity for chip manufacturing processes in geometries below 7 nm. The two leading chip makers using EUV lithography machines are TSMC and Samsung, which are the only ones producing in these miniaturized manufacturing processes where high-performance chips for data centers, artificial intelligence, fifth generation and even smartphones are currently produced. The ASML plant in Berlin, which covers an area of ​​32,000 square meters, belongs to the Berliner Glas company, which was acquired by ASML in 2020, and it manufactures dedicated components for EUV machines.

ASML is in high growth due to the effort of the chip makers to increase production output to meet the demand for chips. Sales The company in the third quarter of 2021 amounted to 5.9 billion euros, with sales of EUV machines peaking. The company’s backlog as of the end of the third quarter was € 6.2 billion, of which € 2.6 billion were for EUV machines. Overall, the company expects a 35% increase in sales in 2021 compared to 2020. The current concern in the chip industry is that damage to ASML’s production output and delivery times will lead to a chain reaction that will only exacerbate component shortages and delay the rate of increase in manufacturers’ output.

Posted in categories: News, Manufacturing and Subcontracting, Semiconductors

Posted in tags: ASML, EUV lithography

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