Fire at ASML Plant Could Worsen the Chip Shortage

Fire at ASML Plant Could Worsen the Chip Shortage
2 min read

In the 3rd US Eastern time, Reuters reported that a fire erupted in a plant located in Berlin, Germany, owned by Dutch lithography giant AMSL.


Fire at ASML Plant Could Worsen the Chip Shortage



Photolithography Machine Used to Manufacture Semiconductor Chips


The report, however, did not include any information regarding the fire, stating only that there were no injuries during the fire.


It is a recognized fact that ASML is a provider of production equipment used by the top semiconductor chip makers within the industry. Amid global shortages of semiconductors over the last two years, significant chipmakers plan to increase their capacity. This "responsible" semiconductor manufacturer also increases the manufacturing of electronic equipment. This means that delays in shipment may impact the semiconductor industry worldwide.


ASML stated that the facility in which the fire broke out was part of Berliner Glas, a supplier of ASML. The factory produces parts for ASML's lithography system. A lithography system is a massive machine designed to build circuits for computers. The components made by Berliner Glas mainly comprise Wafer (wafer tables) and mask disk (reticle Chucks) as well as a mirror (mirror blocks) and others. ASML acquired berliner Glas in 2020. At the time, the company's annual earnings of 220 million euros.


The report noted that in response to the potential damage caused by fire, ASML said it's still too for now to make any statements about the extent of the damage from the fire or whether the event has any effect on the production schedule of ASML in 2022. However, ASML said it would calculate the losses over the coming days, and the final results will be released once the data is compiled.


As per Bloomberg Technology, the ASML closed down the affected part of the facility, but other plant areas continued to operate. Additionally, analysts are concerned that this incident could exacerbate the worldwide shortage of semiconductors, resulting in the demand for semiconductors to a record high.


ASML shares jumped around 1 percent before the announcement and ended the day down 0.7 percent to 701.70 euros on Monday.



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