ASML said on October 14 that its planned supply of chipmaking equipment would not fully meet customer demand in 2027 or 2028, as artificial intelligence investment drives expansion. The Netherlands-based company is examining additional capacity for 2028, according to its quarterly release, highlighting pressure on the machinery needed to produce advanced semiconductors.
Reuters reported that customers including TSMC, which manufactures Nvidia chips, Samsung and Intel are investing to increase chip production. ASML supplies equipment used in advanced semiconductor manufacturing, putting its production plans at a critical point in the AI supply chain.
Chief executive Christophe Fouquet said customers were raising their short- and medium-term equipment forecasts, primarily because of expectations about the scale and duration of AI investment. Some have expressed interest in placing orders for 2029 and 2030. Those expressions of interest are distinct from confirmed orders.
The company is investigating how to expand 2028 capacity beyond the previously discussed 30% increase. Its release specified that earlier plans covered low numerical aperture extreme ultraviolet systems and deep ultraviolet immersion equipment. ASML also said productivity upgrades to installed machines were providing customers with additional wafer capacity.
ASML reported quarterly sales of about €11.7 billion and net income of €4.96 billion. Reuters said the company raised its full-year sales outlook from at least €43 billion to €44 billion–€45 billion. The results accompany a manufacturing expansion effort aimed at meeting sustained equipment demand.
According to Reuters, construction began last month on an expansion in Eindhoven, but its first phase is due for completion in 2029. Finance chief Roger Dassen said upgrades and newer machines with higher throughput would also help address shortages. The timing leaves ASML seeking other ways to increase supply before the new facilities become available.
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