Essay

  ASML is now the top-5 company in Europe measured by its value. It is famous for its lithography machine, without which cutting-edge chips nowadays are impossible. ASML’s success credits a lot to its monopoly in the supply chain of photolithography, which is a key position in global chipmaking. Nevertheless, it is the business model of cooperation that brings it here.

       ASML make itself the “architect” of its ecology. ASML coordinates with companies like Trumpf (which produces the laser) and Zeiss (which produces mirrors).  It outsources around 90% of the manufacturing and mainly focuses on the interface, leaving the suppliers much space for their development. That strategy is largely in line with the fabless spirit of chipmaking. The development of EUV, heart of lithography, is also unimaginably arduous, leaving ASML no choice but to cooperate.

       As the manager of its supply chain, ASML knows that partners matter, so it doesn’t push hard on the profit of its suppliers. Rather, it tries to make its suppliers healthy. Information flows freely inside the network. Engineers from different firms work together, as well as patent.  The atmosphere of faith and transparency is crucial. Competition also happens between the partners of ASML. And when some partners are in a quagmire, ASML will not hesitate to help, and even buy them out, like Berliner Glas, making the system more robust. ASML is a game “maker” besides a player in the chipmaking. It is creating synergies and thriving in it.