Finance
Explainer-The $250 million ASML 'printer' behind Nvidia's chips
Published by Global Banking and Finance Review
Posted on January 28, 2026
3 min readLast updated: January 28, 2026
Quick Summary
ASML's $250M lithography machines are essential for Nvidia's AI chip production, driving demand in the semiconductor industry globally.
The $250 Million ASML Lithography Machines Powering Nvidia's Chips
The Technology Behind ASML's Success
AMSTERDAM, Jan 28 (Reuters) - ASML has become Europe's most valuable company thanks to its dominance in making lithography systems, huge "chip printing" machines that cost $250 million each and are indispensable to firms driving the AI boom.
Demand for ASML's Printers
Here is a closer look at the technology behind the Dutch company's rise.
How ASML's Systems Are Delivered
WHAT IS DRIVING DEMAND FOR ASML'S PRINTERS
Machine Specifications
ASML holds a monopoly on the extreme ultraviolet (EUV) machines applied in the manufacturing of the most advanced semiconductors, though rivals in China and the U.S. are trying to develop alternatives.
Production Process
Rapid advances in AI and a global build-out of data centres has boosted demand for such chips, making supplying Nvidia's manufacturer TSMC and other makers of AI chips ASML's number one business.
THE TECHNOLOGY: HUGE MACHINES WORKING AT NANOSCALE
The machines, the size of a school bus and weighing 150 tons, use a complex system of lasers, mirrors and magnets to write microscopic circuitry onto silicon wafers needed in chip production.
They map out layers of circuitry by shining patterns of light onto silicon wafers, each containing maybe a hundred AI chips, with unparalleled precision.
The EUV wavelength is 13 nanometers. By comparison a human hair is between 80,000 and 100,000 nanometers thick.
The machines offered "patterning precision, scalability and energy efficiency" that advanced chip manufacturing and AI chips in particular depended on, according Luc Van den Hove, CEO of the Interuniversity Microelectronics Centre in Belgium, which collaborated with ASML to develop the technology.
LASERS AND MIRRORS
To generate the EUV light, droplets of tin are blasted at a rate of 50,000 times per second with some of the most powerful lasers ever built, manufactured by German industrial firm Trumpf. A system of mirrors made by German optical systems maker Zeiss, with surfaces smoother than those used in space telescopes and kept in a vacuum, guides the light into the heart of the machine.
The table holding the wafers levitates on magnets and accelerates and decelerates at a rate of 70 to 80 meters per second.
HOW ARE ASML'S SYSTEMS DELIVERED?
EUV machines are assembled in the Netherlands, then packed into around 40 containers, and taken on 747 cargo planes to plants owned by TSMC of Taiwan, which manufactures chips for Nvidia, as well as Samsung and SK Hynix of South Korea, Intel and Micron of the U.S., and Rapidus in Japan. Last year, ASML shipped 44 such systems and analysts forecast large increases will be needed in 2026 and 2027.
(Reporting by Toby Sterling; Editing by Adam Jourdan and Tomasz Janowski)
Key Takeaways
- •ASML's lithography machines are crucial for Nvidia's chip production.
- •Each machine costs $250 million and is vital for AI chip manufacturing.
- •ASML holds a monopoly on EUV technology.
- •Demand is driven by advances in AI and data center expansion.
- •Machines are assembled in the Netherlands and shipped globally.
Frequently Asked Questions about Explainer-The $250 million ASML 'printer' behind Nvidia's chips
1What is lithography?
Lithography is a process used in semiconductor manufacturing to transfer patterns onto a substrate, typically silicon wafers, using light to create intricate circuitry.
2What is extreme ultraviolet (EUV) lithography?
Extreme ultraviolet lithography is a cutting-edge technology that uses short wavelengths of light to create smaller and more complex semiconductor patterns, crucial for advanced chip production.
3What is the significance of AI in chip manufacturing?
AI drives the demand for advanced semiconductors, as it requires powerful chips for processing large amounts of data, thereby influencing the semiconductor market significantly.
4What is the role of TSMC in semiconductor production?
TSMC, or Taiwan Semiconductor Manufacturing Company, is a leading manufacturer of semiconductors, producing chips for major tech companies like Nvidia, utilizing advanced lithography technology.
