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ASML
Benzinga
182 days

Taiwan Semiconductor's Intel Foundry Acquisition Could Be Negative For ASML, KLA, Synopsys, And Cadence: Analyst

1. Taiwan Semiconductor's acquisition of Intel Foundry may reduce capital efficiency for semicap. 2. Potential cancellation of high-NA EUV programs negatively impacts ASML's growth prospects. 3. Increased replacement of equipment at Intel Foundry could diminish demand for ASML's tools. 4. Post-acquisition, the EDA spending is expected to decline, affecting companies like ASML. 5. Intel's transition to TSMC could create orphan fabs, lowering equipment needs overall.

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FAQ

Why Very Bearish?

The acquisition trend signals reduced demand for ASML's high-end lithography tools, historically linked to revenue declines when larger clients simplify operations.

How important is it?

The article addresses key trends in semiconductor manufacturing that directly affect ASML's market position and pricing capabilities.

Why Long Term?

The implications of reduced capital spending on EDA and semicap equipment will persist over several fiscal years, similar to previous industry shifts that took years to recover from.

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