'Super Eul' ASML's Soaring Rise... Surpasses LVMH to Become Europe's 2nd Largest Market Cap

ASML, a Dutch equipment company known as the 'super Eul' in the global semiconductor industry, has risen to become the second-largest company by market capitalization on the European stock market. Amid fierce competition among major semiconductor companies over advanced semiconductor production, ASML's value is rapidly soaring as the sole producer of cutting-edge extreme ultraviolet (EUV) lithography equipment.

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According to Bloomberg on the 6th (local time), ASML surpassed French luxury brand LVMH to become the second-largest company by market capitalization on the European stock market the previous day. ASML's stock price rose 44.1% from 664.30 euros (approximately 988,000 KRW) at the beginning of this year to 957.50 euros on that day. ASML's market capitalization stood at 382.6 billion euros as of that day. The only company with a larger market capitalization than ASML on the European stock market is the Danish pharmaceutical company Novo Nordisk, famous for its obesity treatment drug 'Wegovy.'

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ASML's stock price has been on a continuous upward trend this year. In particular, ASML's value increased further after Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), decided to purchase ASML's new product, the High-NA EUV, which ASML exclusively produces. In fact, after ASML announced the previous day that it would deliver the new product to TSMC within the year, ASML's stock price surged more than 8% in a single day, surpassing LVMH's market capitalization.

TSMC had previously declared that it would handle the 2-nanometer (nm; 1 nanometer is one-billionth of a meter) process using existing EUV equipment, which is one step lower than the High-NA EUV, citing that the equipment was too expensive. However, recently, TSMC CEO Wei Zhejia visited ASML's headquarters and received explanations about the new product, signaling a change in stance. The High-NA EUV equipment reportedly costs 350 million euros per unit, more than twice the price of existing EUV equipment.

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Despite this price, semiconductor manufacturers are eager to establish relationships with ASML. This is because ASML is the world's only company producing EUV equipment essential for advanced semiconductor processes. Major semiconductor companies worldwide, including domestic firms such as Samsung Electronics and SK Hynix, as well as TSMC and Intel in the United States, are sending love calls to secure the equipment, which is why ASML is sometimes called the 'super Eul.'

The market expects ASML's stock price to continue its upward trend for the time being. Demand for EUV equipment is also expected to increase, fueled by the artificial intelligence (AI) boom. Bank of America (BoA) released a report suggesting that ASML's stock price, which has risen to the second-largest market capitalization in Europe, could reach 1,302 euros, a 35% increase from the current level. BoA analyst Didier Susemama predicted, "ASML is expected to achieve sales of 40 billion euros (the upper end of guidance) next year," adding that semiconductor manufacturers will need more advanced EUV equipment as faster and stronger semiconductors are required due to AI-related demand.

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