TSMC and ASML Navigate Headwinds Amid Semiconductor Industry Growth
The semiconductor industry continues to evolve, with Taiwan Semiconductor Manufacturing Company and ASML Holding NV playing pivotal roles. The symbiotic relationship between the two companies has been instrumental in driving efficiency and miniaturization in chip production.
Both companies have been significantly impacted by the U.S.-China tech war. ASML has been barred from exporting its EUV systems to China since 2019, and TSMC was compelled to stop chip production for Huawei in 2020. Further export restrictions will hamper ASML's shipment of its advanced DUV systems to China.
Despite geopolitical challenges and market headwinds, both TSMC and ASML remain strong long-term investments banking on the secular growth of the semiconductor market. However, TSMC currently offers a more attractive investment opportunity than ASML due to its lower forward multiple and stronger near-term outlook. $Taiwan Semiconductor (TSM.US)$ $ASML Holding (ASML.US)$
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