ASML is exploring ways to increase production of its most advanced chipmaking machines as artificial intelligence drives demand for cutting-edge semiconductors.
ASML is examining ways to produce more than 110 extreme ultraviolet (EUV) chipmaking machines in 2028, according to JPMorgan analysts, as demand from the artificial intelligence industry continues to rise.
ASML is looking for ways to increase the number of advanced EUV chipmaking machines it can produce in 2028, with JPMorgan analysts saying the company is examining how it could manufacture more than 110 systems that year.
The Dutch semiconductor equipment maker is facing exceptionally strong demand as chip manufacturers expand capacity to meet the growing needs of artificial intelligence. JPMorgan analysts made the assessment after meeting ASML's chief financial officer.
AI is driving demand for ASML's machines
The rapid expansion of AI has created enormous demand for powerful processors used in data centres. Companies building AI systems need increasingly advanced chips, and those chips require sophisticated manufacturing equipment.
ASML sits at a critical point in that supply chain because its EUV lithography systems are used to print extremely small and complex patterns onto semiconductor wafers.
That makes ASML's production capacity increasingly important as chipmakers such as TSMC, Samsung and Intel invest in advanced manufacturing for AI and other high-performance computing applications.
The pressure point: JPMorgan analysts said ASML's main limitation is the speed at which it can assemble EUV machines rather than a shortage of components from its supply chain.
ASML is already nearly sold out for 2027
ASML has said it is nearly fully booked for its EUV machines for 2027. The company expects to produce at least 80 EUV systems that year and has been targeting a production increase of about 30% in 2028.
JPMorgan's latest assessment suggests ASML is looking beyond that target and exploring ways to push production above 110 machines in 2028.
The fact that most new orders are now aimed at deliveries in 2028 also highlights how far ahead chipmakers are planning their investments in advanced semiconductor capacity.
Why EUV machines are so important
EUV, or extreme ultraviolet lithography, allows chip manufacturers to create some of the smallest and most complicated features used in modern processors.
ASML is currently the world's dominant supplier of EUV lithography systems. Its machines are extremely complex and expensive, making the company one of the most strategically important suppliers in the global semiconductor industry.
The next generation of High Numerical Aperture, or High-NA, EUV machines is also beginning to attract stronger commitments from major chipmakers. These systems are designed to print even finer features and could play an important role in future generations of processors.
The AI boom is not only creating demand for AI models and data centres. It is also putting pressure on the specialised equipment needed to manufacture the chips powering those systems.
The semiconductor race is becoming a race for equipment
As governments and technology companies invest billions of dollars in semiconductor production, access to advanced chipmaking equipment has become almost as important as access to the chips themselves.
ASML's efforts to increase production show one of the challenges facing the industry: even when chipmakers have the money and demand to expand, highly specialised equipment can limit how quickly new manufacturing capacity can be created.
This is particularly important for AI because demand for advanced processors has grown much faster than many parts of the traditional semiconductor market.
If ASML succeeds in increasing EUV production beyond 110 systems in 2028, it could help chipmakers expand their ability to produce the advanced processors needed for the next stage of the AI boom.
Conclusion
ASML is exploring ways to manufacture more than 110 EUV machines in 2028 as demand for advanced semiconductor equipment remains exceptionally strong.
The development shows how the AI boom is spreading through the technology supply chain. Behind every new AI processor is a complex manufacturing process, and ASML's ability to increase the supply of its EUV systems could become an important factor in how quickly the world's leading chipmakers can expand advanced production.
