ASML investment summary

ASML is a manufacturer of advanced lithography machines essential for producing computer chips. Whilst being a Dutch company, 80% of revenue comes from emerging markets (mainly South Korea, China, and Taiwan). Although other companies compete with ASML in this industry, ASML is the only producer capable of supplying the machines needed to manufacture the most advanced chips for high-end computing. Management's commentary that it could not provide guidance for 2026 due to uncertainty around big customers like Intel and Samsung caused the share price to sell off in July. We used the opportunity to increase the position size, and the share has since rebounded from the sell-off, contributing positively to Fund returns. ASML and TSMC are, in our view, two of the most critically important businesses in the modern world.

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