That’s the way they like it. Building more capacity costs shitloads of money, and reduces the price of your product. ASML, TMSC are a racket.
If a major player like the US govt decided they wanted an ASML machine and didn’t want to wait, ASML would find a way to make more in parallel. It would cost billions more, but that just makes it expensive, not impossible. With the right incentive, anything is possible. ASML and TSMC aren’t incentivised to change the current market.
Certainly you don’t invest in more production capacity, if you suspect that demand will crater before your new production comes online.
I thought ASML was backordered for like years?
That’s the way they like it. Building more capacity costs shitloads of money, and reduces the price of your product. ASML, TMSC are a racket.
If a major player like the US govt decided they wanted an ASML machine and didn’t want to wait, ASML would find a way to make more in parallel. It would cost billions more, but that just makes it expensive, not impossible. With the right incentive, anything is possible. ASML and TSMC aren’t incentivised to change the current market.
If those companies that ordered suddenly go boom, those orders are financially worthless.