ASML—the Dutch manufacturer of extreme ultraviolet (EUV) lithography equipment, which is essential for the production of advanced semiconductors—intends to increase its production of EUV machines this year by 36% compared to 2025. The move is driven by a sharp rise in demand from AI chip manufacturers, which is already creating a supply shortage.

According to data from The Wall Street Journal, cited by several publications, the company plans to produce at least 60 EUV systems in 2026, compared to the 48 units delivered last year. In the next phase, production capacity is expected to grow to at least 80 systems per year.

Record Orders from Memory Giants

The production ramp-up comes as major chipmakers place unprecedented orders for ASML equipment. SK Hynix revealed in a regulatory filing in March that it is acquiring EUV lithography systems worth 11.95 trillion won ($7.97 billion) for delivery through December 2027. This is part of an accelerated transition to the sixth-generation process for high-bandwidth memory (HBM) and other AI-related chips. Samsung Electronics followed suit, placing orders for approximately 20 EUV systems worth over 10 trillion won ($7.4 billion) for its Pyeongtaek P5 plant, also targeting the 1c-generation DRAM process.

Meanwhile, TSMC stated that it expects capital expenditures for 2026 to be near the upper end of its forecast range of $52–$56 billion, with 70% to 80% of funds directed toward advanced manufacturing technologies. This represents a growth in capex of at least 25% compared to 2025.

Strong First Quarter Results and Upgraded Forecast

ASML's results for the first quarter of 2026, published on April 14, confirmed the high level of demand. The company recorded total net sales of €8.8 billion—a 13% year-over-year increase—with a gross margin of 53% and net income of €2.8 billion. EUV systems alone generated over €4.1 billion in revenue, including contributions from two High-NA units.

Management raised its revenue guidance for the full year 2026 to €36–40 billion, up from the previous range of €34–39 billion, citing higher demand for immersion systems and additional growth potential for EUV from customers outside China. At a midpoint of €38 billion, the new forecast implies growth of approximately 16% compared to 2025.

Securing Supplies Amid AI Infrastructure Deployment

ASML has no competitors in the EUV lithography segment, with its machines costing between $200 million and $400 million per unit. The company also continues to advance its technology: it has already demonstrated a path to increase EUV source power from 600 to 1000 watts, which could provide approximately 50% more chips from each machine by the end of the decade. Next-generation High-NA EUV lithography systems have already processed 500,000 wafers and reached an availability rate of about 80%, signaling readiness for mass production.