Samsung and TSMC, two of the world’s largest semiconductor manufacturers, are moving ahead with ASML’s most advanced chipmaking equipment, strengthening the case for continued growth at the Dutch lithography giant as artificial intelligence drives demand for increasingly sophisticated chips.
ASML’s US-listed stock rose about 3% during premarket trading on Tuesday, while its Amsterdam-listed shares rose over 1%.
Samsung plans to adopt ASML’s High Numerical Aperture extreme ultraviolet, or High NA EUV, technology for DRAM production, while Taiwan Semiconductor Manufacturing Co. (TSMC) is preparing to use the machines for advanced logic chips.
The commitments are significant for ASML because High NA EUV is expected to become increasingly important as chipmakers push toward smaller and more complex transistor designs.
ASML is the only company capable of producing EUV lithography equipment, which is used to print extremely fine circuit patterns onto silicon wafers.
Its latest High NA systems can create even smaller and more intricate patterns, although each machine costs roughly $400 million.
Samsung and TSMC accelerate High NA adoption
Samsung said it plans to use High NA EUV technology for DRAM manufacturing from 2028, with the company saying the technology would help “extend the DRAM scaling roadmap” and improve manufacturing efficiency.
The move comes as memory manufacturers race to produce increasingly advanced chips needed for AI systems.
TSMC, meanwhile, said it expects its use of High NA systems to increase, “driven primarily by the increasingly complex transistor architectures required for AI applications.”
The Taiwanese chipmaker will begin adopting High NA systems based on existing 6-inch photomasks from 2030.
TSMC has previously been cautious about deploying the expensive technology, arguing that the productivity gains did not yet justify the additional cost.
Its latest commitment therefore represents an important shift in the economics of advanced chip production.
TSMC manufactures chips for some of the world’s biggest technology companies, including Nvidia, Apple, AMD and Qualcomm, while Samsung remains a major supplier of memory chips.
ASML gains visibility into next phase of chipmaking
The commitments from Samsung and TSMC add to ASML’s growing customer base for High NA EUV.
Intel is also using the technology for advanced chip manufacturing, making the three companies some of the most important early adopters of the next generation of EUV equipment.
“This is a big step forward for the adoption of High NA in high-volume manufacturing,” ASML Chief Technology Officer Marco Pieters said.
“This is a significant point where customers recognize the benefit of those systems compared to multi-patterning strategies.”
ASML plans to demonstrate a pilot production line using larger photomasks by 2031, with the technology expected to become ready for high-volume production by 2033.
The company is also working with Samsung and TSMC on next-generation 12-inch photomask technology, up from the current 6-inch format.
Photomasks act as stencils that allow chipmakers to transfer circuit patterns onto silicon wafers.
ASML expects larger masks to improve productivity and reduce manufacturing costs.
“If we’re going to pull it off as an industry, then you’ll actually see that the productivity of those systems will go up by 40%,” Pieters told Reuters.
AI is strengthening the case for expensive lithography
The shift toward High NA EUV is closely tied to the semiconductor industry’s AI investment boom.
Advanced AI accelerators require increasingly complex transistor architectures, putting pressure on chipmakers to improve manufacturing techniques while reducing the need for complicated multi-patterning processes.
That makes High NA EUV potentially important not only for future performance improvements but also for manufacturing efficiency.
For ASML, stronger adoption could create a major new source of demand after the company spent years working with customers to bring the technology from development into commercial manufacturing.
TSMC is particularly important to that outlook.
The Taiwanese chipmaker accounts for roughly 16% of ASML’s revenue, according to Bloomberg data.
With TSMC, Samsung and Intel now moving toward High NA, ASML has greater visibility into the potential market for its newest machines.
ASML stock investors see stronger growth ahead
Investors have already placed a substantial premium on ASML’s position in the AI semiconductor supply chain.
The stock has gained about 120% over the past year, and analysts increasingly view High NA adoption as an important factor supporting the company’s longer-term growth.
Barclays said the latest announcements “should provide more visibility on adoption which has been a key debate,” adding that the news is “a positive.”
The company has not recently provided a specific forecast for High NA machine sales, although it expects to increase total EUV capacity by about 30% in 2027.
The company had raised its financial guidance for 2026 in July, after reporting stronger-than-expected second-quarter earnings and announcing plans to increase capacity.
Barclays said the stronger customer commitments could force ASML to consider expanding capacity beyond its existing plans.
“We see ASML with a significant decision ahead on whether to further expand EUV capacity than the recently expanded targets it has already given. Demand is clearly strong,” the analysts said.
That creates a potentially important opportunity for ASML.
BofA Global Research maintains a Buy rating on ASML Holding with a price target of €2,452.
Last month, the firm said it expects ASML to deliver one of the strongest growth profiles among large-cap semiconductor equipment makers, with consensus forecasting a 27% compound annual growth rate in revenue, compared with a 22% peer average.
ASML is also projected to post the highest earnings-per-share CAGR among its peers at 39%, versus an average of 33%. BofA’s own revenue and earnings estimates remain above consensus.
As Samsung and TSMC prepare to deploy High NA technology, the company could benefit from a new investment cycle in chipmaking equipment — one increasingly powered by the relentless demand for AI computing.
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