Abstract:
ASML, a Dutch lithography equipment manufacturer, said that the demand for chip manufacturing equipment brought by artificial intelligence continues to heat up. According to the current plan, the company's supply capacity in 2027 and 2028 is not enough to fully meet customer demand, and it is studying to further expand production capacity. CEO Christophe Fouquet said that customer discussions have gradually extended from 2027 to further years. The company has not only seen a large number of order demands for 2028, but also customers have begun to inquire about supply arrangements in 2029 or even 2030.
ASML's net sales in the third quarter reached 11.662 billion euros, setting a company quarterly record; gross profit margin was 57.5%, net profit was 4.96 billion euros, and basic earnings per share were 12.95 euros. The company sold 113 new lithography systems and 8 second-hand systems in the quarter. Sales of installed base management business such as maintenance and upgrades were 3.289 billion euros, higher than previously expected, pushing the gross profit margin to exceed the guidance range.
The company expects net sales in the fourth quarter to be 14.2 billion to 15.2 billion euros, with a gross profit margin of about 57%; analysts compiled by the London Stock Exchange Group expected 14.2 billion euros. ASML also narrowed its full-year net sales outlook for 2026 to 44 billion to 45 billion euros, with a gross profit margin of about 56%; the previous full-year sales forecast range was 43 billion to 45 billion euros. The company expects research and development expenses in the fourth quarter to be approximately 1.2 billion euros, and sales and administrative expenses to be approximately 400 million euros.
Fuquet said that customers continue to increase their short-term and medium-term equipment demand forecasts, mainly based on judgments on the scale and duration of AI-related investments. ASML previously expected that production capacity will increase by about 30% in 2027 and another 30% in 2028. In view of strong demand, the company is studying how to expand production capacity in 2028 beyond the previously announced range and provide customers with more wafer production capacity through productivity upgrade plans.
ASML is the world's largest supplier of chip lithography equipment, and its extreme ultraviolet lithography systems are used to manufacture advanced semiconductors. Although AI infrastructure construction has brought strong orders, the company's expansion of delivery still depends on equipment manufacturing, supply chain and production capacity ramp-up. Therefore, strong customer demand does not mean that related equipment can be delivered immediately.
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