--- title: "ASML brief: About the company • Despite economic volatility, ASML benefits from long-term growth..." canonical_url: "https://typefully.com/t/WHlJCQW" markdown_url: "https://typefully.com/t/WHlJCQW.md" agent_guide_url: "https://typefully.com/ai-agents.md" robots: noindex source: typefully_shared_draft share_id: "WHlJCQW" --- ASML brief: About the company • Despite economic volatility, ASML benefits from long-term growth drivers: AI, energy transition, electric vehicles, and IoT - all fueling semiconductor demand • Core strategy focuses on 3 areas: growing holistic lithography business, securing unique supply chain, and expanding into adjacent markets • Their "holistic lithography" approach combines: Hardware (lithography systems) Software solutions Metrology & inspection systems Process control tools • Major growth catalysts: AI and compute demand Automotive electrification Industrial IoT Energy transition needs • Business model uniqueness: Supports both cutting-edge and mature chip manufacturing Provides end-to-end solutions from design to mass production Focus on making chip manufacturing more cost-effective Strong supply chain management Financials Key Financial Highlights: • 2023 Performance Total sales up 30.2% (strong year despite macro challenges) 51.3% gross margin Revenue: €27.6bn (€6.4bn increase from 2022) • Segment Growth (2022 → 2023): Logic: €10.0bn → €16.0bn (60% growth) Memory: €5.5bn → €5.9bn (moderate growth) Service/Field: €5.7bn → €5.6bn (slight decrease) • R&D Investment 2023: €4.0bn (up from €3.3bn in 2022) Major focus: EUV tech and High NA development Continued investment in DUV portfolio improvements Future Outlook: • 2024: Expected to be a transition year, revenue similar to 2023 • 2025 Target: €30-40bn revenue, 54-56% gross margin • 2030 Target: €44-60bn revenue, 56-60% gross margin Key Growth Drivers: • Supply constraints easing (backlog fulfillment) • Increased China order fulfillment • Strong Logic segment performance • Continued EUV system delivery growth (53 units in 2023 vs 40 in 2022) Environmental Key Environmental Goals: • Net Zero Emissions Target: 2040 (company-wide) Scope 1 & 2: Net zero by 2025 Supply chain emissions: Net zero by 2030 Product use emissions: Net zero by 2040 2023 Performance: • Emissions Progress: Scope 1 & 2: 35.1 kt (↓ from 38.1 kt in 2022) Scope 3: 15.0 Mt total Energy efficiency: 7.7 kWh per wafer pass (↓ from 8.3 kWh) 91.4% renewable electricity use Circular Economy Achievements: • System Longevity: 95% of systems sold in past 30 years still active ~570 systems refurbished and resold 88% parts reuse rate (up from 87%) Challenges: • Waste increased 29% (8,932 tonnes) due to company growth • Recycling rate dropped to 55% (from 75% in 2022) • Business travel emissions up 13% post-COVID Key Focus Areas: • EUV light source optimization (largest energy consumer) • Supply chain partnerships for emission reduction • Waste reduction in operations • System lifetime extension and parts reuse Social ASML's social initiatives and ecosystem development: Workforce & Culture: • Total employees: 42,416 FTE in 2023 • Key metrics: New hires: 4,129 (11% rate, ↓ from 21%) Women in new hires: 27% (↑ 3%) Employee engagement: 80.3% (↑ 2.4%) Low attrition: 3.6% (↓ from 6.0%) Supply Chain: • Scale: €15.5B total spend, ~5,100 suppliers • Sustainability commitment: 57% of top 60 suppliers signed environmental commitment 90% completed RBA self-assessment 69% spend on product-related suppliers Innovation & R&D: • Investment: €4.0B in 2023 (102% increase from 2019) • Ecosystem support: €16.4M to EU research projects €1.2M in-kind support to startups 4,640 hours supporting high-tech ventures 20+ deep-tech ventures supported Community Impact: • Investment: €15.4M in community initiatives • Volunteer engagement: 25,650 hours in community involvement 4,800 hours in technology promotion Strong focus on STEM education €319 spent per employee on community programs Governance ASML's governance and transparency initiatives: Key Governance Highlights: • Code of Conduct Performance: 87% employee completion rate Monthly themed ethics training 613 Speak Up reports (↑ from 414 in 2022) 1.5 reports per 100 employees (↑ from 1.1) Zero human rights grievances in 2023 Stakeholder Engagement: • Active engagement across groups: Customers: Regular tech roadmap meetings, feedback surveys Employees: Engagement surveys, Works Council, networks Suppliers: Annual Supplier Day, audits, newsletters Shareholders: Quarterly updates, AGM, investor days Community: Environmental and social initiatives Transparency Initiatives: • Key Focus Areas: Preparing for EU's CSRD compliance (2024) Enhanced ESG reporting Comprehensive tax reporting Regular stakeholder communication Progress tracking on sustainability goals ESG Integration: • Core elements: ESG embedded in decision-making Focus on responsible business conduct Risk management Employee behavior aligned with values Regular progress monitoring. Links referred: Lithography principles: https://www.asml.com/en/technology/lithography-principles 2023 Annual Report Website: https://www.asml.com/en/investors/annual-report/2023#2023-annual-report 2023 Annual Report PDF: https://edge.sitecorecloud.io/asmlnetherlaaea-asmlcom-prd-5369/media/project/asmlcom/asmlcom/asml/files/investors/financial-results/a-results/2023/2023-annual-report-based-on-us-gaap-m7rf6.pdf Vision and Mission: https://www.asml.com/en/company/about-asml/vision-and-mission Founder Mode Brief: Brian Chesky's Podcast: • Entrepreneur vs. Manager: Brian says that founders should avoid conventional management advice, as it may hurt startups. • Stay Involved: Founders should dive into the details of their business instead of just relying on their teams. • Set Big Goals: Encouraging teams to aim high is key to achieving great results. Paul Graham's on Founder Mode: • Bad Advice: A lot of founders get advice made for managers, which can hinder their progress. • What is Founder Mode?: This approach lets founders stay engaged and flexible, unlike the more inflexible Manager Mode. • Communicate Across Levels: Open dialogue within the organization helps maintain a startup atmosphere. • Being Different is Good: Founders often have unique ways of doing things that can lead to success, even if they seem odd to others. Emery Wells' Learnings: • Stay Strong: Founders need to bounce back from challenges and adapt quickly. • Team Matters: Building a strong team is essential. Hire people who share your vision. • Keep Learning: It's important for founders to learn from their experiences and adjust their strategies.