ASML’s Monopoly on Chip-Making Machines Fuels $1.4 Trillion AI Boom

ASML Holding NV’s monopoly on extreme ultraviolet lithography machines has become the linchpin of the AI revolution. The Dutch firm’s technology enables production of the advanced chips powering Nvidia’s AI accelerators and OpenAI’s systems—a market where competitors literally cannot get a foot in the door.

CEO Christophe Fouquet’s obsessive mastery of technical details mirrors the precision required to manufacture these $200 million machines. ‘You need to understand what they do,’ Fouquet says of clients like Intel and Samsung. His 16-year tenure transformed ASML from a niche player to the sole supplier of equipment needed to produce sub-5nm chips.

The stakes are astronomical. With AI-related semiconductor spending projected to hit $1.4 trillion by 2027, ASML’s machines represent both the bottleneck and the lifeline for the entire tech ecosystem. ‘Without them, it’s impossible to produce the most advanced semiconductors,’ says Chip War author Chris Miller.