Moats Unbreachable: TSMC and ASML Lead Chip Tech
Chip technology is a crucial component of the growing artificial intelligence (AI) market. Companies that possess the most advanced technology tend to be valued at a premium and often fly under investors' radar.
Taiwan Semiconductor Manufacturing (TSM) and ASML have built unbreachable moats in chip technology, outpacing Intel and Nvidia in this regard. TSM's size and technology make it impossible for competitors to match, while ASML holds a technological monopoly on a vital machine.
ASML builds machines that are integral to manufacturing semiconductor chips, including extreme ultraviolet lithography (EUV) machines. These circuits can be as little as 2 nanometers apart, making these machines essential for advanced chip production.
TSM has a nearly unbreachable moat due to its ability to scale production and roll out cutting-edge technology first. It accounted for an estimated 72.5% of global chip foundry revenue during the second quarter.