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A fireplace on the ASML plant could worsen chip shortages

For the third time in U.S. history, Reuters reported that a hearth had broken out at a factory situated in Berlin, Germany, owned by Dutch lithography giant AMSL.

Photolithography machine used for production Semiconductor chips

Nonetheless, the report didn’t contain any information concerning the fire, it only stated that there have been no injuries through the fire.

It’s well-known that ASML is a supplier of producing equipment utilized by the industry’s leading semiconductor chip manufacturers. Amid global semiconductor shortages over the past two years, major chipmakers are planning to expand their production capability. This “responsible” semiconductor manufacturer can also be increasing its production of electronic equipment. Because of this delivery delays could impact the semiconductor industry around the globe.

ASML stated that the ability where the hearth broke out was a part of Berliner Glas, an ASML supplier. The factory produces parts for the ASML lithography system. A lithography system is a strong machine designed to construct circuits for computers. The components produced by Berliner Glas mainly include waffle plates (waffle tables) and masking disc (mesh holders), in addition to mirror (mirror blocks) and others. ASML acquired Berliner Glas in 2020. At the moment, the corporate’s annual profits were 220 million euros.

The report noted that in response to the potential damage brought on by the hearth, ASML said it was too early to comment on the extent of the damage brought on by the hearth or whether the event had any impact on ASML’s 2022 production schedule. ASML, nevertheless, said it might calculate the losses in the approaching days and the ultimate results can be published once the info was accomplished.

In keeping with Bloomberg Technology, ASML closed the affected a part of the ability, but other areas of the plant continued to operate. Furthermore, analysts fear that this incident may worsen the situation around the globe semiconductor shortagewhich pushed demand for semiconductors to record levels.

ASML shares jumped about 1 percent ahead of the announcement and ended Monday down 0.7 percent to 701.70 euros.

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