10 ms·

ASML is (now) a company everyone has heard of, but like GP hinted at with their Zeiss comment, their supply chain is crazy deep as well. Getting everything scal

by xxpor 4y ago

ASML is (now) a company everyone has heard of, but like GP hinted at with their Zeiss comment, their supply chain is crazy deep as well. Getting everything scaled up across companies and countries is far from trivial.

terminalcommand 4y ago
That's true, but this is one of the most important techs we have. From the recent news, I see that TSMC wants ASML to scale up as well. TSMC announced that it will cut its capital expenditure by 10% due to supply problems. This announcement tanked ASML's share price. My comment is that ASML is hitting their profit targets, they have backlog until 2024. If I were leading ASML or an employee of it, I wouldn't want to scale up. I am already hitting my targets, it's cozy, I have backlog until 2024, I have no competition. The current situation is good for ASML and bad for us. My comment is equally applicable for all companies in the supply chain that are monopolies.
- snovv_crash 4y ago
  Apparently ASML's internal processes are a mess, with everything consistently blocked by technical debt. I suspect this is the biggest blocker to their ability to scale their production faster.
  - achenet 4y ago
    this makes me wish I were like the Harvey Keitel character in Pulp Fiction, so I could straighten my tie, say "I'm on it", and hop into my vintage Mercedes convertible to go fix it.
    - mattclarkdotnet 4y ago
      It’s a Honda and it’s not a convertible. Memory is strange.
      - tyingq 4y ago
        US model, so it was an Acura NSX. Don't know if the one in the film had it, but some years of the NSX had a removable targa top.
- lmm 4y ago
  Frustrating your consumers by not being able to supply their orders is how you stop being a monopoly. Eventually your backlog is long enough that it becomes worth your clients figuring out how to do what you do in-house, or a startup spots an opportunity. Being oversubscribed is a nice position to be in, but it doesn't mean you can rest on your laurels. (Plus, even if you're hitting your profit targets, leaving a boatload of money on the table has gotta be frustrating for at least some of ASML's employees and insiders).

by xxpor 4y ago

terminalcommand 4y ago

That's true, but this is one of the most important techs we have. From the recent news, I see that TSMC wants ASML to scale up as well. TSMC announced that it will cut its capital expenditure by 10% due to supply problems. This announcement tanked ASML's share price. My comment is that ASML is hitting their profit targets, they have backlog until 2024. If I were leading ASML or an employee of it, I wouldn't want to scale up. I am already hitting my targets, it's cozy, I have backlog until 2024, I have no competition. The current situation is good for ASML and bad for us. My comment is equally applicable for all companies in the supply chain that are monopolies.

snovv_crash 4y ago
Apparently ASML's internal processes are a mess, with everything consistently blocked by technical debt. I suspect this is the biggest blocker to their ability to scale their production faster.
- achenet 4y ago
  this makes me wish I were like the Harvey Keitel character in Pulp Fiction, so I could straighten my tie, say "I'm on it", and hop into my vintage Mercedes convertible to go fix it.
  - mattclarkdotnet 4y ago
    It’s a Honda and it’s not a convertible. Memory is strange.
    - tyingq 4y ago
      US model, so it was an Acura NSX. Don't know if the one in the film had it, but some years of the NSX had a removable targa top.
lmm 4y ago
Frustrating your consumers by not being able to supply their orders is how you stop being a monopoly. Eventually your backlog is long enough that it becomes worth your clients figuring out how to do what you do in-house, or a startup spots an opportunity. Being oversubscribed is a nice position to be in, but it doesn't mean you can rest on your laurels. (Plus, even if you're hitting your profit targets, leaving a boatload of money on the table has gotta be frustrating for at least some of ASML's employees and insiders).