In this segment of "Semiconductor Revolution" on Motley Fool Live, recorded on Jan. 20, Fool contributor Jose Najarro discusses the latest innovation by ASML (ASML -1.95%) in chip-making technology.
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Jose Najarro: One of the things ASML mentions is the megatrends for semiconductors continues to drive this industry. This is a very innovative market. A few years ago, a huge product for TSM [Taiwan Semiconductor (TSM 0.36%)], for example, was the 7 nanometers, now it's the 7 nanometers and the 5 nanometers. Just that innovation again pushes ASML to continue to innovate as well and continue to have a reason for them to sell their products.
I want to break down a little bit their sales breakdown and want to get some of your opinions. Here we can take a quick look at 2020 sales and 2021. The first thing we notice, the biggest markets for these are the EUV, extreme ultraviolet machines. These are pretty much used to, I want to say paints to some extent, the wafers. I don't know if there's someone else might explain it better, but this is the EUV markets, and then they have their R5 market. These are the two main markets for ASML. They are pretty much, I want to say over 80% of the overall revenue for the company.
I do want to say region grows shipping, Taiwan and South Korea are the biggest places that take their orders. This is well-known. Like TSM, a lot of factories obviously in Taiwan, South Korea, I believe that's where we have a lot of Samsung Foundries if I'm correct, and then we have USA very small.
Overall in the news, I feel like we're hearing a lot of news about United States, a lot of companies building new factories here in the United States. We have Intel (INTC 0.02%), for example, focusing in Arizona, I think we have TSM also somewhere in Arizona, we have a few others in Texas. But at the end of the day, we look at that just difference between market share around for USA compared to Taiwan and South Korea.