ASML Aims for Over 110 EUV Systems in 2028 Amid Rising AI Chip Demand
ASML, the Dutch semiconductor equipment manufacturer, is planning to produce more than 110 extreme ultraviolet (EUV) lithography systems by 2028. This represents a potential increase of over 37% from its expected output in 2027 and reflects growing demand for advanced AI chips. According to JPMorgan analysts who met with ASML’s CFO, the company is nearly sold out through 2027 and has shifted production constraints toward assembly speed rather than component availability. ASML's EUV systems are critical for manufacturing leading-edge semiconductors used in AI applications. Major customers like TSMC, Samsung, SK Hynix, and Intel continue to expand their advanced chip capacity. The company is also constructing a new facility in Eindhoven aimed at accelerating production and eventually housing up to 20,000 workers. ASML's strong market position—holding nearly all of the EUV lithography market—is further reinforced by its upcoming High-NA technology, which promises even more advanced chip manufacturing capabilities. However, analysts caution that ASML’s expansion is dependent on sustained AI investment and faces risks from potential slowdowns in hyperscaler spending.
Topics: AI chip demand ASML capacity expansion EUV lithography