ASML: Supply Chain Resilience & Supplier Agreements
Former Executive at ASML
inpractise.com/articles/asml-supply-chain-resilience-and-supplier-agreements
Former Executive at ASML
Interview Transcript
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Yes, they always say that's also part of the company's moat. Such a complex system with so many loose parts, for competitors, it's almost impossible to define the total.
In 2011, we introduced the concept of unique suppliers. A unique supplier is a single supplier virtually integrated with ASML through a contractual agreement. We created long-term supplier agreements with clauses allowing ASML, in case of disruption, to take over the supplier or their machines to ensure continuity. We had a case with Prodrive, an Eindhoven-based electronics maker, where a fire destroyed half the factory. The next day, 100 people went to the location to salvage what was intact and help the supplier relocate and continue production. This is why ASML has a unique business model, unlike most peers.
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