It is the sole provider of extreme ultraviolet (EUV) lithography machines, a critical technology for advanced semiconductor manufacturing at nodes below 7nm. Competitors like Nikon and Canon still produce older DUV tools, but ASML's technological moat, especially in EUV, positions it as a monopoly supplier in the most advanced segment of the market. ASML's Moat: Strengths, Threats, and the Road Ahead The company's core strengths lie in its monopoly over EUV systems, strong gross margins, and deeply entrenched relationships with leading chipmakers like TSMC, Intel, and Samsung. These form a wide economic moat, reinforced by its intellectual property and complex manufacturing expertise. Despite this, ASML ( $ASML.NV ) faces some internal and external weaknesses. It relies heavily on a few major customers, operates in a highly cyclical industry, and faces long lead times in system production.