ASML, the Dutch company that holds a monopoly on the extreme ultraviolet (EUV) lithography machines critical for making advanced AI chips, is accelerating production to meet skyrocketing demand. The company plans to build at least 60 standard EUV machines in 2026 — a 36% increase over its 2025 output.
The expansion is driven by massive investments from major tech companies. Microsoft, Meta, Amazon, and Alphabet are projected to spend over $600 billion on AI this year, prompting chipmakers like TSMC to boost their own spending. ASML CEO Christophe Fouquet stated the company aims to avoid becoming a bottleneck for customers. Annual revenue is expected to rise to $42–$47 billion, up from roughly $38 billion.
ASML is investing about $2.2 billion in facilities and equipment this year, 20% more than in 2025. New cleanrooms are under construction in the US, Germany, and South Korea, and a new campus is planned at its Dutch headquarters in Veldhoven. The company is also recruiting globally to address local labor shortages.
Scaling up production is challenging due to the complexity of these machines. Each EUV machine is the size of a bus and uses a high-powered laser to vaporize tiny tin droplets, generating extreme ultraviolet light that etches microscopic patterns onto silicon wafers. Assembly takes months and requires parts from hundreds of suppliers; even a single dust particle can disrupt the process. Next-generation EUV models cost around $400 million or more, though TSMC has opted to stick with standard machines for now.
Beyond ramping up, ASML is diversifying into advanced packaging — a technique that stacks multiple chips, critical for Nvidia's most powerful AI processors. The company's CTO, Marco Pieters, told Reuters that ASML plans 10 to 15 years ahead and is evaluating future packaging needs.
ASML has also invested €1.3 billion in French AI startup Mistral AI, becoming its largest shareholder. The partnership aims to reduce Europe's reliance on American and Chinese AI models.