ASML Expects Demand to Exceed Supply Until 2028, Considers Further Capacity Expansion

Dutch ASML, the world's largest semiconductor lithography equipment manufacturer, has raised its full-year sales forecast and stated that equipment supply will not keep up with demand between 2027 and 2028.

Announcing its third-quarter (July–September) earnings on October 14, ASML projected its full-year sales to be between 44 billion and 45 billion euros (approximately 65.5 trillion to 67 trillion won).

This raised the lower end of its previous forecast (43 billion to 45 billion euros).

Fourth-quarter sales are projected to be between 14.2 billion and 15.2 billion euros.

This represents a 22% to 30% increase compared to the third quarter.

Chief Executive Officer Christophe Fouquet said, "We expect that currently planned supply will not fully meet customer demand in both 2027 and 2028," adding, "We are considering increasing our production capacity beyond the previously announced 30% expansion for 2028."

He noted that customers are continuing to raise their equipment demand forecasts based on the scale and duration of AI investments, stating, "Some customers have expressed their intention to place orders for 2029 and even 2030."

Because ASML equipment takes over a year from order to delivery, the company's performance is considered a leading indicator for gauging semiconductor companies' investment plans.

ASML's third-quarter sales reached a record quarterly high of 11.66 billion euros (approximately 17.4 trillion won).

This met market expectations (11.56 billion euros).

The gross margin was 57.5%, exceeding the company's guidance, and net profit surged 70% from the second quarter (2.92 billion euros) to 4.96 billion euros (approximately 7.4 trillion won).

ASML sold 17 extreme ultraviolet (EUV) lithography systems in the third quarter.

As semiconductor companies moved to upgrade existing equipment, service sales also increased by 19% from the previous quarter.

Roger Dassen, ASML's Chief Financial Officer, said, "The 36% year-on-year increase in total sales this year is mainly thanks to the EUV business," adding, "The EUV business will grow by more than 45% this year."

According to ASML investor data, the regional breakdown of new equipment sales in the third quarter placed Taiwan (32%) and South Korea (31%) in first and second places, followed by China (23%) and the United States (13%).

According to Bloomberg, Samsung Electronics plans to enter mass semiconductor production with cutting-edge "High-NA EUV" equipment—costing 400 million dollars (approximately 530 billion won) per unit—by 2028, while TSMC plans to do so by 2030.

(Photo: Getty Images)
※ Please note: This article was translated by AI and may contain errors.