Companies
ASML Projects AI Chip Demand Will Exceed Supply Through 2028
ASML, the Dutch semiconductor-equipment manufacturer, has revealed that customer demand for AI technology will outstrip supply in both 2027 and 2028. This forecast was made during the company’s third-quarter results announcement on October 14, 2026, which also highlighted record sales and a raised full-year outlook.
In the third quarter, ASML reported net sales of €11.66 billion and a net income of €4.96 billion. The company has adjusted its full-year sales guidance for 2026 to between €44 billion and €45 billion, reflecting strong demand for its advanced tools, particularly High-NA EUV systems. Looking ahead, ASML expects fourth-quarter sales to range between €14.2 billion and €15.2 billion, with a gross margin around 57%.
The primary concern now is the supply gap. ASML has already announced a 30% increase in production capacity, but this may not be sufficient to meet the rising demand. CEO Christophe Fouquet noted that customer forecasts are significantly increasing, with interest in orders extending into 2029 and 2030.
ASML is currently the sole producer of EUV lithography machines, essential for manufacturing cutting-edge chips that power AI systems. Major clients, including TSMC and Samsung, have reaffirmed their confidence in ASML’s technology, emphasizing the critical role of EUV machines in producing advanced logic and memory chips.
For investors, ASML’s long-term demand visibility is promising, although the inability to ship enough machines could delay revenue recognition. Key factors to monitor include potential further capacity increases for 2028, confirmation of fourth-quarter sales within the projected range, and the conversion of orders for 2029 and 2030 from interest to firm commitments.
FAQ
What is ASML's forecast for AI chip demand through 2028?
ASML projects that customer demand for AI technology will exceed supply in both 2027 and 2028.
What were ASML's net sales and net income in the third quarter of 2026?
In the third quarter of 2026, ASML reported net sales of €11.66 billion and a net income of €4.96 billion.
How much has ASML increased its production capacity?
ASML has announced a 30% increase in production capacity to address the rising demand for its advanced tools.
Who are some of ASML's major clients?
Major clients of ASML include TSMC and Samsung, who have reaffirmed their confidence in ASML's technology.
What are the key factors to monitor regarding ASML's future performance?
Key factors to monitor include potential further capacity increases for 2028, confirmation of fourth-quarter sales within the projected range, and the conversion of orders for 2029 and 2030 from interest to firm commitments.