Why ASML Holding Rose 10.3% in August
Shares of ASML Holding (NASDAQ: ASML) rose 10.3% in August, according to according to data from S&P Global Market Intelligence. There wasn't much new company-specific news for ASML last month, as the company had already reported strong earnings at the end of July. However, an announcement from key customer Samsung was the likely factor behind ASML's August rise.
In August, Samsung announced it was raising its capital spending plans to $205 billion over the next three years, an increase of 33% over the prior three years. Samsung is aiming to catch up to Taiwan Semiconductor Manufacturing in leading-edge chip manufacturing capabilities, and is sparing no expense to do it. The stakes are so high that the Korean government released Samsung leader Lee Jae-yong from prison earlier than expected due to "economic factors." Likely, some feel his imprisonment has played a role in Samsung losing ground to TSMC in recent years in the key field of leading-edge semiconductor manufacturing.
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Source Fool.com
