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Key Facts on Semiconductor Industry Players
Taiwan Semiconductor Manufacturing (TSMC) is recognized as the world’s leading semiconductor contract manufacturer, with a forecasted increase in AI chip demand growing at a 40% compound annual growth rate (CAGR) in the coming years. The company, trading at a forward P/E ratio of under 23.5, has strong pricing power, expecting hikes of 3% to 10% next year.
In contrast, ASML dominates the extreme ultraviolet lithography (EUV) market with no direct competitors. The company has seen increased orders for its next-generation High-NA EUV machines, priced at around $400 million each, while also facing potential declines in demand for its older DUV machines due to a pull forward in orders from China.
Overall, analysts suggest that while both TSMC and ASML will benefit from growth in advanced chips, TSMC is better positioned for market performance in 2026, compared to ASML, which may experience challenges due to prior demand shifts.
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