Europe’s most valuable firm projected net sales to rise to between €43 billion ($49.2 billion) and €45 billion this year in a statement released on Wednesday. Previously, in April, ASML had estimated annual sales of €36 billion to €40 billion.
The demand has prompted ASML’s clients not just to ramp up their capital expenditure, “but also to speed up all their plans,” said Chief Executive Officer Christophe Fouquet in a video transcript accompanying the announcement. “This creates a significant need for more systems starting this year.”
ASML plays a crucial role in the semiconductor supply chain, being the sole manufacturer of advanced lithography machines essential for producing cutting-edge semiconductors, including chips from Nvidia Corp. that support AI model training and operation in data centers. With technology giants like Microsoft Corp. and Alphabet Inc. investing heavily to bolster infrastructure for advanced AI capabilities, chipmakers are hurrying to expand their manufacturing capacity.
ASML’s stock has risen by 69% this year, driven by anticipation that this demand will extend to the company’s products, and investors are keenly observing any indications that the surge in AI investments and related infrastructure will persist. Taiwan Semiconductor Manufacturing Co., the largest advanced logic chip producer and a significant ASML client, reported a 36% increase in quarterly sales this week.
“Our order intake has remained extraordinarily robust in the first half of the year,” Fouquet stated.
A key challenge for Fouquet has been meeting the soaring demand for the complex machines. The company aims for a capacity of approximately 65 units for its second-most advanced equipment, referred to as the low NA EUV, this year, an increase over previous forecasts. It also plans to boost that by 30% for 2027 and mentioned that ASML is “exploring” adding another 30% capacity the following year.
Billionaire Elon Musk is promoting initiatives to create state-of-the-art chips that align with his robotics, AI, and space data center goals. ASML, which also serves clients like Samsung Electronics Co. and Intel Corp., announced last month a collaboration on Musk’s Terafab project.
On Monday, ASML disclosed that Intel Corp. has started using its most advanced machine for chip manufacturing. This new equipment—termed high numerical aperture extreme ultraviolet lithography, or High NA—offers more precise patterning for advanced chip production.
“This confirms the tool’s maturity,” Fouquet remarked in the transcript.
For the second quarter, net sales reached €9.33 billion, as stated. Analysts had predicted revenue of €8.85 billion for the period, based on Bloomberg’s collected estimates.
South Korea and Taiwan were ASML’s largest markets during the three months ending in June. China’s contribution to the company’s net system sales decreased to 14%, down from 19% in the first quarter.
The machines shipped by ASML to China are eight generations behind the latest model, a consequence of US-imposed restrictions aimed at hindering the advancement of China’s semiconductor sector.
In recent discussions, US Commerce Secretary Howard Lutnick expressed concerns to ASML’s senior management that one of ASML’s EUV machines might have inadvertently ended up in China, violating US-led export limits, as reported by Bloomberg. ASML stated it has never sent an EUV machine or any specially designed components to China.
ASML is also facing heightened risks concerning its sales to China, as US lawmakers have proposed legislation to further restrict chip-making equipment exports to the country.
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