ASML expects demand to outstrip supply in 2027 and 2028
ASML’s planned capacity for 2027 and 2028 will not fully meet customer demand, the company now says. ASML is therefore looking at ways to expand capacity beyond what it has already announced. Third-quarter sales reached a record EUR 11.7 billion.
ASML’s customers keep raising their short- and medium-term demand forecasts. According to ASML’s quarterly report, the main driver is how large and how long-lasting they expect AI-related investment to be. Some customers have also asked about placing orders for 2029 and even 2030.
“With such strong visibility and an order book momentum that continues to increase quarter on quarter this year, we now expect that our supply as currently planned for both 2027 and 2028 will not fully meet the demand of our customers. Given this, we are investigating ways to increase capacity for 2028 beyond the 30% increase we previously communicated. In addition, we continue to provide significant wafer capacity to our customers through our productivity upgrade portfolio,” says ASML President and CEO Christophe Fouquet.
ASML already plans to increase its low-NA EUV and DUV immersion capacity by 30% in 2027, compared with 2026 levels. In its Q2 report, the company said it was investigating a further 30% increase in 2028. That 2028 figure is the one ASML now wants to go beyond.
Total net sales for the third quarter rose to EUR 11.7 billion, up from EUR 9.3 billion in the previous quarter. Installed Base Management, which covers service and field upgrades, accounted for EUR 3.3 billion. That was above ASML’s guidance, as demand for productivity upgrades remained strong. Gross margin rose to 57.5%, from 54.0% in the second quarter, and net income came in at EUR 5.0 billion, up from EUR 2.9 billion.
ASML sold 113 new lithography systems during the quarter, up from 86 in the previous quarter. It also sold eight used systems.
For the fourth quarter, ASML expects total net sales of between EUR 14.2 billion and EUR 15.2 billion and a gross margin of around 57%. Full-year sales are expected to land between EUR 44 billion and EUR 45 billion, with a gross margin of around 56%.
