ASML raises 2026 forecast, expands capacity on AI chip demand
ASML's Financial Performance and Strategic Expansion
By Toby Sterling and Nathan Vifflin
Strong Second-Quarter Earnings Driven by AI Demand
July 15 (Reuters) - ASML, the world's biggest supplier of equipment used to manufacture computer chips, on Wednesday raised its financial forecasts for 2026 and said it would expand capacity after reporting better-than-expected second-quarter earnings, driven by artificial intelligence demand.
Updated 2026 Revenue Forecast
ASML said it now expects full-year 2026 net revenue of 43-45 billion euros, an increase of 16% at the midpoint from its earlier forecast range of 36-40 billion euros.
Q2 2024 Financial Results
Revenue for the three months ended June 30 was 9.33 billion euros ($10.90 billion), topping analysts' estimates of 8.80 billion euros, while net income was 2.92 billion euros, above expectations of 2.62 billion euros, according to LSEG data.
AI Chip Demand Fuels Capacity Expansion
Customer Demand and Order Intake
Chief Executive Christophe Fouquet flagged "extremely strong" order intake due to demand for AI chips.
"Our customers in turn continue to accelerate their capacity expansion plans (...) providing ASML with increased visibility into longer-term demand," Fouquet said in a statement.
Role of EUV and DUV Tools
Key Customers and Technology
The Dutch company is the only maker of extreme ultraviolet lithography (EUV) tools, which are needed to make cutting-edge chips. Customers including TSMC, Samsung, SK Hynix and Micron are racing to add capacity for AI-related demand.
Planned Capacity Expansion
ASML said it intends to expand capacity for its flagship EUV tools, as well as for deep ultraviolet (DUV) tools needed for less advanced chips and by customers in China, by 30% in each of the coming two years.
Intel to Use ASML's High-NA Tool
Separately, Fouquet said Intel will use ASML's new High-NA tool to make some of its most advanced "Panther Lake" chips, marking a first for the technology.
(Reporting by Toby Sterling in Amsterdam, Nathan Vifflin in Gdansk, editing by Matt Scuffham)
