You don't just 'purchase machines' to magically create cutting edge semiconductors. If this were the case, why in the world would ASML be selling them to TSMC?

You don't just 'purchase machines' to magically create cutting edge semiconductors. If this were the case, why in the world would ASML be selling them to TSMC? ASML's Q1 Net Revenue: $2.79 billion TSMC Q1 Net Revenue: $12.9 billion Don't you think ASML would just pocket the world's semiconductor income if this were the case? The machines are only a part of the equation. How you use the machines and the processes you develop to create cutting edge semiconductors are arguably the more important part of the equation. As someone else mentioned in the comments, think of it as the difference between being a chisel manufacturer and a master sculptor. The tools are only a part of the equation. The methods and processes developed by TSMC are valuable pieces of technology. This value has an additional moat surrounding it due to the astronomical capital investment required to use it. Even if you knew of all of TSMC's process information, you wouldn't be able to use it without tens of billions of dollars in investments, many years of construction, an adequately skilled workforce and right customer contacts.