Systems engineering is the oil of value creation at ASML

ASML’s latest annual report neatly defines the craft of developing, manufacturing and commercializing the world’s most advanced lithography systems: “We master this process by balancing our customers’ needs, product capabilities and technology solutions.” ASML is talking about systems engineering here. To this definition may be added that system engineers – at some companies, they call them “system architects” – do this to create value. Value for the customer. ASML’s systems thinkers are experts at translating this into maximum value for their own business.

The market success is compelling. At age 38, ASML now ranks in the top-40 in the daily changing list of the world’s most valuable companies, having a market capitalization of 240 billion euros (after peaking at 360 billion in 2021). Among the tech companies, it ranks 13th. And when it comes to complex hardware, only Apple, Tesla, Nvidia and Samsung are more valuable. ASML is worth more than chipmaker Intel and two and five times as much as IC equipment suppliers Applied Materials and KLA, respectively.