ASML Holding N.V. (ASML): “Semiconductor equipment supply shortage through 2028” ... weighs further capacity expansion

[Financial News] The Netherlands-based ASML, the world’s largest maker of semiconductor lithography equipment, expects it will struggle to meet all of its customers’ equipment demand through the year after next as investment in AI semiconductors expands. With medium- to long-term demand rising rapidly, some customers are showing interest in ordering equipment for delivery as far out as 2030. ASML is also considering expanding capacity beyond its existing plans.
ASML said on the 14th (local time) that revenue in the third quarter of this year was 11.662 billion euros (about 17.49 trillion won). That was up about 25% from the previous quarter, setting a quarterly record. Net income for the same period rose about 70% to 4.96 billion euros (about 7.44 trillion won). Gross margin also increased by 3.5 percentage points, from 54.0% to 57.5%.
Sales of new lithography machines rose to 113 in the third quarter from 86 in the previous quarter, while sales of used machines increased from five to eight.
ASML CEO Christophe Fouquet said, “Total net sales in the third quarter reached a record 11.7 billion euros, near the upper end of our guidance,” adding, “This reflects the strong execution of our capacity ramp-up.”
ASML stressed that forecasts for equipment demand from global semiconductor manufacturers are also rising as investment related to AI expands. It said customers are continually raising their forecasts for equipment demand not only in the short term but also over the medium to long term, and some are showing interest in equipment orders for 2029 and 2030. ASML’s major customers include Samsung Electronics Co., Ltd., SK hynix, Taiwan Semiconductor Manufacturing Company Limited (TSMC), and U.S.-based Intel. These companies are increasing their adoption of extreme ultraviolet (EUV) lithography equipment to expand capacity for advanced semiconductor production.
In response, ASML is considering ways to expand capacity further. The company previously proposed increasing capacity for EUV lithography equipment and deep ultraviolet (DUV) immersion equipment by 30% each in 2027, followed by a further 30% expansion in 2028. However, given the recent pace of demand growth, it believes that even this supply plan will not be enough to fully meet customer demand.
Fouquet said, “Order momentum has continued to strengthen quarter after quarter this year,” adding, “We expect that our current supply plans for 2027 and 2028 will not be enough to fully meet customer demand.” He added, “We are considering further expanding capacity in 2028, beyond the more than 30% capacity expansion we previously announced.”
ASML forecast fourth-quarter revenue this year of 14.2 billion to 15.2 billion euros and a gross margin of about 57%. It projected full-year revenue of 44 billion to 45 billion euros and a full-year gross margin of about 56%.
Fouquet said, “Based on their outlook for the scale and duration of AI-related investment, customers are continually raising their forecasts for short- and medium-term demand for ASML equipment.”

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