ASML Targets Over 110 EUV Chip-Printing Tools Amid Growing AI Demand by 2028
ASML's Production Plans and Market Outlook
AMSTERDAM, Sept 14 (Reuters) - ASML is looking at ways to produce more than 110 of its EUV chip-printing tools in 2028 to meet AI-driven demand, JPMorgan analysts said on Monday after meeting the firm's CFO. ASML has said it is nearly sold out of the machines for 2027 and can make at least 80, while targeting a 30% increase in 2028.
Strong Demand and Order Trends
• "Management indicated that demand remains very very strong," JPMorgan analysts wrote in a note, adding that most orders are now for EUV machines to be delivered in 2028.
Production Constraints and Supply Chain
Assembly Speed as a Limiting Factor
• JPM said ASML's limiting factor is its speed of EUV assembly, not supply chain
Customer Base and Market Expansion
Intel and Emerging Customers
• Intel seen "becoming a meaningful customer again" in 2027 with new customers including Musk's Terafab "developing"
Increasing EUV Usage Intensity
• Use of EUV measured by "intensity," or usage per chip, is increasing in current cycle
Adoption of Next-Generation Tools
High NA Tools Timeline
• Adoption of next-generation High NA tools will start in 2028 but "more meaningfully over the next decade".
Sales to Chinese Memory Chip Makers
• Sales to Chinese memory chip makers will be stronger in 2027
Technological Advances and Light Source Choices
Laser Advances vs. FEL Light Source
• Given laser advances, ASML sees no reason to try new "FEL" light source favored by Musk
(Reporting by Toby Sterling; Editing by Alexander Smith)
