How ASML is Turning Supply Chain Lemons Into Lemonade

They say that necessity is the mother of invention. As such, this difficult period of supply chain issues, shortages, and high inflation could be fertile ground for companies to find new and better ways to operate. After all, the pandemic showed companies that they could function effectively with many or all of their employees working from home. What new efficiencies might be developed in the current constrained environment?

For example, semiconductor equipment company ASML Holdings (NASDAQ: ASML) has a problem: It lacks enough capacity to meet its customers' demand, and those supply constraints are leading to long wait times for buyers. Since ASML has a monopoly on some technologies that are essential for chipmakers, this has been very disruptive to some customers. While there are some concerns about a potential glut of PC and smartphone chips, shortages persist for other types of cloud, industrial, and automotive chips.

However, ASML has adapted, figuring out a new way of operating that could actually pay dividends in the future, even after current supply chain problems ease.

Source Fool.com