ASML's Production Capacity Cannot Keep Up with the Increasing Chip Demand

ASML achieved record revenue in the third quarter of 2026. Chipmakers' claim on ASML revenues extends to 2030.

ASML demonstrated the highest quarterly performance in its history with $13.06 billion in revenue in the third quarter of 2026. The acceleration of investments in artificial intelligence infrastructure has brought the demand for chip production equipment to record levels.

The company recorded a 55 percent increase in ASML revenues compared to the same period last year, reaching $13.06 billion. During this period, the company reached a gross profit margin of 57.5 percent and sold a total of 121 lithography systems, 113 of which were new and 8 of which were renewed.

Record Revenue and Increasing Demand

17 of the systems sold were EUV lithography machines used in the production of the most advanced chips. EUV systems alone generated $4.59 billion in revenue.

In the regional distribution, Taiwan ranked first with 32 percent, while South Korea received 31 percent, China 23 percent and the USA 13 percent. Although ASML aims to increase its production capacity by 2028, it predicts that current plans may be insufficient to meet customer demand.

CEO Christophe Fouquet stated that customers can see their future needs more clearly thanks to long-term agreements. The company is already receiving order requests for delivery in 2029 and 2030.

New Technologies and Pricing Strategy

New generation High-NA EUV lithography systems play a critical role in ASML's growth plans. While Intel plans to use High-NA systems in 14A production technology in 2028, Samsung aims to switch to this technology in DRAM production.

TSMC's transition to this technology extends to the 2030-2031 period. The availability rate of High-NA systems in use is approaching 90 percent, indicating that they are ripe for high-volume production.

To increase production efficiency, ASML is developing new systems such as the Twinscan NXE:3800F, which can process 260 plates per hour. The company announced that it will implement a new value-oriented pricing strategy in response to increasing demand.

This pricing will be felt partially from 2027 and more clearly from 2028. China continues to account for approximately 20 percent of ASML's total revenue despite export restrictions.

The company keeps its total revenue forecast for 2026 between 49.3 and 50.4 billion dollars. This growth is due to artificial intelligence infrastructure investments forcing chip manufacturers to increase capacity.

How do you think this huge increase in demand in chip production will be reflected in the prices of technological products in the coming years?