ASML reports record quarterly sales, warns capacity will lag AI demand
The chipmaking equipment supplier raised the lower end of its 2026 sales outlook and is examining a larger capacity expansion for 2028.
ASML lifts annual sales forecast as chip tool demand strains capacity
Customers are showing interest in deliveries for 2029 and 2030, while ASML says its planned production increases will not be enough.
ASML raised its annual sales projection to €44-45 billion on October 14, up from at least €43 billion, as the Dutch chipmaking equipment company reported demand beyond its planned capacity. Customers are already considering orders for delivery in 2029 and 2030, the company said.
Net sales reached €11.7 billion in the third quarter, with net profit at €4.96 billion. ASML forecast sales of €14.2 billion to €15.2 billion for the fourth quarter. Its shares gained 2% on October 14, taking their year-to-date rise to almost 70%.
Chief Executive Christophe Fouquet said orders for 2028 were substantial, with customers also interested in later deliveries. In July, ASML outlined capacity increases of 30% in 2027 and a further 30% in 2028. Fouquet said those plans would not be sufficient to meet demand.
Construction has started on an expansion in Eindhoven, Netherlands, whose first phase is scheduled to be finished in 2029. Chief Financial Officer Roger Dassen said ASML would also upgrade tools already in use and sell newer machines with greater throughput to address the shortage.
Dassen said price increases would start in 2027 and have their full effect from 2028. ASML's customers include TSMC, Samsung, Intel, SK Hynix and Micron. Dassen said the company was still assessing the scale of the opportunity from Elon Musk's TeraFab, another customer with expansion plans.