ASML raises sales forecast and plans more EUV machine output

In short: ASML raised its sales forecast again and said it will make more of its most advanced chipmaking machines to meet AI-driven demand.

What happened

ASML, a Netherlands-based company that makes key equipment used to manufacture computer chips, raised its annual sales outlook for the second time this year. It now expects net sales of €43bn to €45bn, above analysts’ estimate of about €39.6bn.

The company reported strong second-quarter results. Sales rose 21% from a year earlier to €9.3bn, and net income was €2.9bn. ASML said customers have been upgrading existing equipment, which helped results.

ASML’s CEO Christophe Fouquet said the company plans to increase production capacity of its most advanced “extreme ultraviolet” (EUV) lithography machines by 30% next year. Lithography machines are like very precise printing systems that help put tiny circuit patterns onto chips. ASML is also considering a similar increase in 2028, and said it is already close to having all the EUV orders it needs for 2027.

ASML can only produce a few dozen of these EUV machines each year, and some people in the tech industry see that limit as a possible bottleneck. ASML also said Intel has started using its latest “High NA” EUV machine in production, and this tool can cost up to about $400mn.

Why it matters

AI systems need a lot of chips, and making those chips requires specialized machines that very few companies can build. If ASML can deliver more of these tools, chipmakers may be able to expand supply faster, which can affect everything from data centers to the pace of new AI products.

Source: Financial Times