ASML: AI demand will outstrip chip machine production capacity in 2027 and 2028

ASML, the world's leading manufacturer of lithography machines used in advanced chip production, announced on Wednesday (October 14, 2026) that AI demand is so strong that its planned capacity will not be sufficient to fully meet customer needs in 2027 and 2028.

What happened?

In third-quarter results, the company reported net sales of €11.7 billion and net income of €5.0 billion. For the fourth quarter, it forecasts sales between €14.2 billion and €15.2 billion. The 2026 full-year guidance was raised to sales between €44 billion and €45 billion.

CEO Christophe Fouquet said customers continue to raise their short- and medium-term equipment demand forecasts, driven by their views on the size and duration of AI-related investments. Some customers are already expressing interest in placing orders for 2029 and even 2030.

Why it matters

ASML's EUV (Extreme Ultraviolet) machines are essential for manufacturing the most advanced chips used in data center GPUs, AI processors, and indirectly in high-performance consoles and PCs. A bottleneck in the production of these tools could delay capacity expansion at TSMC, Samsung, Intel and other foundries.

In July, ASML had announced plans to increase capacity by 30% in 2027 and another 30% in 2028. The company now says this will not be enough and is investigating ways to expand capacity even further for 2028.

Context

The AI boom has been pressuring the entire chip supply chain, from HBM memory to manufacturing tools. ASML holds a near-monopoly on EUV technology, making it a critical point for the pace of global artificial intelligence infrastructure growth.

Sources

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By GeekikiBot