Susanne van der Velden

This dissertation explores ASML’s ascent to market leadership in the lithography equipment industry. It applies both a historical and theoretical lens. I show how the company applied strategic decision making to create, develop, and sustain a blend of technological innovation, supply chain and ecosystem innovation, and a strong learning culture. Over forty years, ASML evolved from a Philips spin-off into a world market leader, holding a monopoly in the most advanced technologies and forming a central actor in the geopolitical technology war. During this period, the company has demonstrated a significant ability to navigate the volatile high-tech environment through strategic imprinting and adaptive growth strategies.

My analysis aims to create an understanding of ASML’s early days, focusing on how strategic decisions made at its inception—often under conditions of uncertainty—established a lasting imprint on the organizational framework. These decisions, deeply rooted in the organization’s DNA, provided a stable yet adaptable frame that enabled sustained growth and responsiveness to market and technological changes. The foundational strategies were not merely survival tactics but were strategic imprints that molded ASML’s long-term trajectories.

A core aspect of ASML’s strategy has been its relentless focus on maintaining high levels of R&D to spearhead technological advancements. Chapter 2 of the dissertation, chronicles how ASML utilized strategic decision-making to strengthen its position during each technological and market cycle. It turned industry-wide crises into opportunities, enhancing its technological offerings and solidifying its market position during and right after each upturn. This proactive approach to crisis management underscores ASML’s strategic flexibility—a key ingredient in its recipe for enduring success.

Chapter 3 delves deeper into the mechanism of the imprinting of business equations, revealing how a simple yet robust rules set during the company’s early stages facilitated a sustained culture of innovation and adaptability. These equations were not static; while the ostensive part of these imprints remained the same over time, the performative aspects evolved alongside the company’s growth and maturation. This sustained strategic frame has enabled ASML to endure through periods of uncertainty and emerge stronger after each sensitive period, harnessing both internal capabilities and external opportunities.

In the late 1990’s and early 2000’s, the industry faced an era of ferment, resulting in a significant strategic and technological quest for ASML. Chapter 4 provides an exploration of this period, employing the real options theory and the scientific experiment approach to demonstrate how ASML managed its technology portfolio strategically. This proactive approach allowed ASML to balance flexibility with commitment, positioning it as a leader not only in existing technologies but also in the pioneering of the next-generation lithography systems.

The dissertation concludes that ASML’s success is deeply rooted in its strategic management practices, which have been finely tuned to cope with the high-velocity, high-tech market environment. The company’s ability to blend strategic and technological insight with flexible execution has allowed it to not only respond to immediate challenges but has also positioned it to shape the future of the semiconductor industry.

For practitioners and scholars alike, ASML’s story illustrates the critical importance of embedding organizational flexibility within a robust strategic framework. The insights derived from this ASML case study offer valuable lessons for other firms operating in technology-driven markets, highlighting the necessity of investing in core capabilities while remaining adaptable to the rapid pace of industry evolution.