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    ASML Holding NV (ASML)

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    Business Description

    ASML is a leading supplier to the semiconductor industry, providing essential hardware, software, and services for the mass production of integrated circuits (microchips). The company plays a crucial role in enabling the creation of more affordable, powerful, and energy-efficient microchips, which are vital for modern technology and addressing global challenges. ASML's offerings include advanced lithography systems, metrology and inspection systems, and computational lithography and process control software.

    1. EUV (Extreme Ultraviolet) Lithography - Provides advanced lithography systems for cutting-edge chip manufacturing, enabling the production of smaller and more powerful microchips.
    2. ArFi (Argon Fluoride Immersion) Lithography - Offers deep ultraviolet lithography systems for high-resolution patterning in semiconductor manufacturing.
    3. Logic Applications - Supplies lithography systems tailored for logic chip production, which are used in processors and other computing devices.
    4. Memory Applications - Delivers lithography systems designed for memory chip production, essential for data storage solutions.
    5. Metrology & Inspection Systems - Ensures precision and quality in the chipmaking process through advanced measurement and inspection technologies.
    6. ArF Dry (Argon Fluoride Dry) Lithography - Provides lithography systems for specific semiconductor manufacturing processes requiring dry patterning techniques.
    7. KrF (Krypton Fluoride) Lithography - Offers lithography systems for less complex semiconductor manufacturing processes.
    8. I-line Lithography - Supplies lithography systems for mature semiconductor manufacturing processes.
    9. Computational Lithography and Process Control Software - Provides tools to optimize the lithography process and improve chip performance.
    10. Refurbished Systems and Installed Base Management - Supports customers by managing and upgrading existing systems to extend their lifecycle and enhance performance.

    Questions to Ask Management

    1. Given the pushouts from multiple customers and the slower-than-expected recovery in key end markets like mobile and PC, how confident are you in your revised 2025 revenue guidance, and what additional risks might further impact your outlook?

    2. With China representing around 20% of your business and considering the potential for increased export controls, how are you mitigating the risks associated with this market, and could we see further declines in your China revenue beyond 2025?

    3. Considering that some of your major Logic customers are reducing or delaying their investments, and the competitive dynamics among your customers, how do you plan to address the potential concentration risk in your customer base and ensure sustainable growth?

    4. You've mentioned prebuilding tools to meet future demand, but in light of recent order pushouts and uncertainties, is it financially prudent to continue prebuilding, and how might this affect your pricing power and inventory levels?

    5. While you've highlighted AI as a potential upside, given the slower adoption and the fact that some uncertainties have materialized, can you provide more specifics on how AI demand is impacting your business and whether it's enough to offset the current headwinds?