ASML, the Dutch high-technology firm, said it has upgraded its sales outlook as demand for computing power driven by artificial intelligence is expected to keep rising. The company manufactures extreme ultraviolet (eUV) lithography machines used to produce the most advanced semiconductors in the world — machines often described as among the most complex human-made devices.
Quarterly results and major customers
ASML reported 21% year-on-year sales growth in the second quarter. According to the Financial Times, strong orders from two major customers, Intel and Taiwan Semiconductor Manufacturing Company (TSMC), point to continued demand.
Production constraints and planned capacity increases
Production of eUV machines is a significant bottleneck in the AI supply chain: ASML is the only company that makes eUV systems, and it currently produces only a few dozen units per year. In response to anticipated sustained demand, ASML announced plans to increase its capacity by about 30% next year and to implement a similar expansion in 2028.
Why this matters
eUV machines are essential for manufacturing the most advanced chips used in AI servers and high-performance computing. Because there are no alternative suppliers of eUV equipment, ASML’s production limits and capacity decisions have direct implications for global chip supply and the pace at which AI deployments can scale.
(Reporting based on the Financial Times)
