ASML, the Dutch semiconductor equipment manufacturer, has warned that demand for its chipmaking machines will exceed available supply through 2028 as the artificial intelligence (AI) boom drives massive investments in data centres and advanced chip production.
The company said customers are seeking additional manufacturing capacity beyond 2027, with some already expressing interest in placing orders for equipment deliveries in 2029 and 2030. The growing demand highlights the pressure facing the semiconductor supply chain as technology companies race to expand their AI infrastructure.
ASML Chief Executive Officer Christophe Fouquet said the company was receiving strong orders for 2028, alongside growing interest in securing capacity for subsequent years. Its customers include major chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics and Intel, which are investing heavily in expanding production to meet demand for advanced processors and memory chips.
ASML had previously outlined plans to increase production capacity for selected extreme ultraviolet (EUV) and deep ultraviolet (DUV) lithography systems by 30% in 2027, while exploring a further 30% increase in 2028. However, Fouquet indicated that these measures would not be sufficient to meet the full level of customer demand.
To address the shortage, the company plans to upgrade existing machines and introduce newer versions capable of processing more wafers. ASML is also expanding its manufacturing operations in Eindhoven, the Netherlands, although the first phase of its new campus is expected to be completed in 2029. The company has said that equipment upgrades and productivity improvements will help customers increase output before the new facility becomes operational.
ASML Raises Full-Year Sales Forecast
Alongside its warning about capacity constraints, ASML reported stronger-than-expected third-quarter earnings and raised the lower end of its full-year sales forecast.
The company recorded third-quarter net sales of €11.7 billion and net income of approximately €4.96 billion. It expects fourth-quarter sales of between €14.2 billion and €15.2 billion, with a gross margin of around 57%.
ASML now forecasts full-year 2026 net sales of €44 billion to €45 billion, with a gross margin of approximately 56%. The updated outlook reflects sustained demand for semiconductor manufacturing equipment as AI-related investments continue to expand.
The company also indicated that it would increase prices from 2027, with the full impact expected to become visible in 2028. The move comes as equipment demand remains strong and manufacturers seek to secure the tools needed to expand production.
ASML’s outlook underscores the importance of semiconductor manufacturing equipment in the global AI race. While chipmakers continue to invest in new factories and advanced production technologies, the availability of specialised equipment remains a key factor in determining how quickly additional capacity can come online.
With customers already looking beyond 2028 to secure future supply, the semiconductor industry faces continued pressure to balance rising AI demand with the time and investment required to expand manufacturing capabilities.
Leave a comment