- Jan 8, 2001
Sorry Doug, that's just a terrible analogy. ASML's book to bill ratio is simultaneously enviable and tragic. There huge sums of money being left on the table here. I don't know why they haven't expanded capacity - I haven't even looked it up yet. But it would be foolish for them to hamper production on the basis of exclusivity. Their products are born of real needs by real business partners - not persons who's vanity is matched by the size of their wallet. There has to be another reason.It doesn't make fiscal sense for ASML to "ramp production" for something which has basically three customers in the whole world none of whom will need even three digit quantities of this equipment for years.
Sure, they'd all like to get EUV machines more quickly, but if you build the capacity to give them what they want quickly, then you have a bunch of capacity sitting idle for months/years until they need more. The device is so specialized and complex it isn't like they can turn around and start making something else with the same production equipment.
Its like making ultra high end supercars like Konigsegg. When they introduce a new model, they might get 50 people (not sure of the exact volume, but they ain't Ferrari or even Lamborghini) who want one. They would all prefer if they got it immediately, but Konigsegg might produce them over a year or two so just about all of them will have to wait to take delivery. If they geared up to produce all 50 in a week they'd have to lay off their employees and pay rent on an empty factory the rest of the time.