ASML: Chipping away at world domination

9

October

2022

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If you live in The Netherlands, you have most likely heard of ASML. If that is not the case, semiconductors will probably ring a bell. ASML stands for Advanced Semiconductor Materials Lithography, but “advanced” is an understatement. Let’s take a look at why this is. 

ASML has been dubbed the “most important tech company in the world” because of its unique market position. The Veldhoven based company does not make semiconductors; it makes the machines to make semiconductors – without ASML there are no chips. Its machines are known as EUVL (extreme ultraviolet lithography) machines. 

Being the godfather of semiconductors does not only bring advantages. ASML finds itself in the middle of geopolitical affairs. The United States has blocked the sales of ASML machines, the famed EUVL machines, to China’s largest chip factory, SMIC. There are no other competitors to ASML for the EUVL machines, making them an extremely valuable geopolitical asset. To sketch an idea of how complicated these machines are is a task within itself. The laser beams used to print the chips can generate plasma temperatures 40 times hotter than the Sun’s surface. 

The common saying “information is power” could not be more true in the time we live in right now. The race for information supremacy is fuelled by the rise of two geopolitical technological universes: China vs. the West. China is winning the 5G race, but the US still makes the fastest computers and the best fighter jets. But what do fighter jets and 5G infrastructure have in common? Semiconductors. 

Reverse engineering an EUVL machine is an almost impossible task. Even if one has the blueprints to build the machine, it is extremely difficult to copy the technology. You simply need the experience and know-how that ASML has. It is simply not just a wild accusation that ASML has been spied on by Chinese and Korean competitors. Once others can make the machines too, it will level the playing field. For now, ASML enjoys no direct competitors and the United States is making sure China will not either. 

However, just as ASML faces challenges on the world stage, it also faces challenges back home. Veldhoven, a small place just outside Eindhoven in The Netherlands, and its residents are not all too happy with the chip conglomerate. As the EU wants to become more chip-independent, it is subsidizing key players such as ASML to do its part. With exponential growth comes exponential expansion. What took ASML 38 years to build will be doubled in the next decade. Factories, offices and storage facilities are all part of this. Every month, hundreds of new employees are hired, but they also need a place to stay. This creates tension among the local community because there is already a housing crisis in The Netherlands. As more and more expats are being flown in, the housing prices will increase respectively. Though the chip-giant is the cash cow of the local community, the goodwill of its surrounding members is decreasing. It is definitely interesting to see where the developments around ASML will take us, both on a local and geopolitical level. 

Sources:

Bordoloi, P., 2022. Is ASML the Most Important Tech Company in the World?. [online] Analytics India Magazine. Available at: <https://analyticsindiamag.com/is-asml-the-most-important-tech-company-in-the-world/> [Accessed 9 October 2022].

Fitch, A. and Woo, S., 2022. The U.S. vs. China: Who Is Winning the Key Technology Battles?. [online] The Wall Street Journal. Available at: <https://www.wsj.com/articles/the-u-s-vs-china-who-is-winning-the-key-technology-battles-11586548597> [Accessed 9 October 2022].

Hasan, S., 2022. Scientists divided over US blocking key chipmaking equipment sale to China. [online] TRT World. Available at: <https://www.trtworld.com/magazine/scientists-divided-over-us-blocking-key-chipmaking-equipment-sale-to-china-61248> [Accessed 9 October 2022].

Kasteleijn, N., 2022. ASML heeft een groeispurt en dat merken de inwoners van Veldhoven. [online] NOS. Available at: <https://nos.nl/artikel/2444618-asml-heeft-een-groeispurt-en-dat-merken-de-inwoners-van-veldhoven> [Accessed 9 October 2022].

Maxham, A., 2022. ASML Was Spied On By Its ‘Biggest South Korean Customer’, Samsung. [online] Android Headlines. Available at: <https://www.androidheadlines.com/2019/04/asml-espionage-samsung-chipsets.html> [Accessed 9 October 2022].

Ramani, S., 2022. ASML village booming with more facilities – Eindhoven News. [online] Eindhoven News. Available at: <https://eindhovennews.com/news/2022/09/asml-village-booming-with-more-facilities/> [Accessed 9 October 2022].

Shih, W., 2022. Why Is Biden Restricting More Chip Tech To China? It’s Complicated.. [online] Forbes. Available at: <https://www.forbes.com/sites/willyshih/2022/09/14/export-restrictions-on-sale-of-chips-and-equipment-to-china-will-they-work/> [Accessed 9 October 2022].

VPRO Tegenlicht – Het geheim van ASML, 2022. [TV programme] 2: VPRO. 

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Rise of the Planet of the Humanoids

6

October

2022

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A year ago, the famed Tesla CEO Elon Musk revealed his plans to build a Tesla robot. Although the initial “robot” at the 2021 AI-Day was just a man in a suit with silly dance moves, this time it’s the real deal. 

So what? Robots are not something new. Are we just supposed to believe the real-life Tony Stark? Well, I am glad you asked! 

Let’s first start by analyzing the Tesla robot, the so-called “Optimus” robot. Actually, Optimus is referred to as a “humanoid”, a robot with human-like characteristics. Besides the fact that Optimus can move, e.g. dancing and waving, it is supposed to do a lot more than that. The prototype shown on stage could simply move a little bit, but videos of the robot in action shows that it can carry objects in the Tesla factory and office. 

Optimus is not just an over-engineered intern designed to pass coffee; it’s an autonomous machine designed to make an impact on many people’s lives. Musk predicts that the price of the Optimus humanoid could be less than $20,000 and be ready for mass production in 3-5 years. Its future tasks will include cooking, doing groceries and a general extra hand around the house. The Tesla CEO calls it the “most important product development we’re doing this year.” 

However, the richest man in the world is not the only person concerned with designing human-like robots. Many other companies have been focussing on this for a long period of time. Research supports that 90% of human behavior is predictable and can be replicated by data-driven models. Thus, this predictable behavior can be acted out by robots. Big conglomerates like Toyota and Honda have both developed humanoid robots that perform complicated actions like shooting a basketball, which is much more than Optimus can do right now. 

The world-famous, Hyundai-owned, Boston Dynamics, has made an advanced humanoid that can even do backflips and parkour. So far, the competition seems tough as the barriers of entry require highly specialized knowledge. The Boston Dynamics Group has been working on Robots since 1992, long before Tesla and its technologies were founded. Musk has made grant promises in the past, such as that the Tesla Model 3 would cost $35,000 whilst it’s now being sold for $46,990, or that the Cybertruck would be ready for purchase in 2019. What’s to say that this is not one of those unrealistic promises? Who’s to say that Xiaomi’s CyberOne humanoid won’t beat Musk’s humanoid to the market? Tesla argues that its the “world’s biggest robotics company, but we will have to wait to see how that’s going to play out. 

Sources:

Ackerman, E., 2022. Xiaomi Builds a Humanoid Robot for Some Reason. [online] IEEE Spectrum. Available at: <https://spectrum.ieee.org/humanoid-robot-xiaomi-cyberone#toggle-gdpr> [Accessed 5 October 2022].

Bender, M., 2022. Competitors’ Bots Outshine Musk’s Own at Tesla A.I. Day. [online] The Daily Beast. Available at: <https://www.thedailybeast.com/competitors-bots-outshine-elon-musks-own-humanoid-robots-at-tesla-ai-day> [Accessed 5 October 2022].

Hawkins, A. and Shakir, U., 2022. Tesla CEO Elon Musk unveils prototype humanoid Optimus robot. [online] The Verge. Available at: <https://www.theverge.com/2022/9/30/23374729/tesla-bot-ai-day-robot-elon-musk-prototype-optimus-humanoid?scrolla=5eb6d68b7fedc32c19ef33b4> [Accessed 5 October 2022].

Lango, L., 2022. Optimus Underwhelmed, But Robots Are Still the Future. [online] InvestorPlace. Available at: <https://investorplace.com/hypergrowthinvesting/2022/10/optimus-underwhelmed-but-robots-are-still-the-future/> [Accessed 6 October 2022].

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