Better Semiconductor Stock: ASML vs. TSMC

ASML (NASDAQ: ASML) and (NYSE: TSM) are two mutually dependent bellwethers of the semiconductor sector. ASML is the world's largest manufacturer of lithography systems, which are used to etch circuit patterns onto silicon wafers. It's also the only manufacturer of high-end extreme ultraviolet (EUV) lithography systems, which are required to produce the world's smallest chips.

ASML's largest single customer is TSMC, the world's largest and most advanced contract chipmaker. TSMC uses ASML's EUV and older deep ultraviolet (DUV) systems to manufacture chips for fabless chipmakers, like Apple, Nvidia (NASDAQ: NVDA), Qualcomm, and AMD.

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Source Fool.com