$ASML

TSMC's quarterly demand for chipmaking tools surged to 1.9x its 2025 projection, driven by AI demand. TSMC raised its 2026 capex guidance to $60-64B and expects 40% revenue growth. CEO C.C. Wei acknowledged supply constraints, with fabs struggling to meet demand. ASML, the sole EUV supplier, also faces capacity limits.

ASML Holding (ASML) shares rose 4% to $1,711.115 after TSMC (TSM) announced a near-doubling in equipment orders. ASML reported Q2 revenue of 9.33 billion and net income of 2.92 billion, with a 31.3% margin. The company expects full-year sales of 43-45 billion, up 34.6% from 2025, and plans to increase production capacity by 30% for 2027.

ASML (NASDAQ:ASML) plans to expand its Japan workforce to 700 by 2030, supporting semiconductor production. It opened a Hokkaido office in 2024 and aims to station workers in Kumamoto. ASML's 2025 Japan sales reached $1.4B, supplying TSMC, Rapidus, and Micron. This supports Japan's domestic semiconductor manufacturing push.

Fitch Ratings affirmed ASML's Long-Term Issuer Default Rating at 'A+' with a Stable Outlook, citing its leadership in lithography tools and strong market position. The company expects 30% revenue growth in 2026-2027 and a 55% gross margin in 2025. Fitch noted geopolitical risks and customer concentration as constraints. ASML's largest customers accounted for 61% of 2025 sales, with China's share expected to decline to 20% in 2026.

The Dutch economy is expected to grow 1.3% in 2025 and 1.4% in 2026, with shifting growth drivers. Higher inflation and interest rates may temper investment. ASML raised its 2026 revenue forecast to €43-45bn, potentially boosting GDP growth by 0.2-0.3 percentage points. Exports and investment are becoming more important, while household consumption and public spending contributions are declining.

ASML aims for 90% availability of its high-NA EUV systems by Q4 2026, up from 84% in July, to meet customer demands for high-volume manufacturing. The EXE:5200B system has met key specifications, including 135 wafers per hour and comparable performance to 0.33-NA EUV systems. ASML is working to reduce downtime and improve reliability, with 10 systems currently in use and another 3 being shipped or installed.

The article analyzes the semiconductor sector, highlighting key companies like ASML, TSMC, Micron, SK Hynix, Samsung, Synopsys, Cadence, Nvidia, and AMD. It discusses supply chain dependencies, with Nvidia as a demand hub and others as critical chokepoints. Recent financial data includes TSMC's raised capex to $62B, ASML's strong sales, and Nvidia's revenue growth of 106%. The sector saw a trillion-dollar market value drop in late July, followed by a rebound driven by supply constraints and stro

UBS reports China's EUV lithography tech is behind ASML's 2004 level, unlikely to reach mass production within a decade. Immersion DUV systems could be mass-produced in 2–5 years. ASML's Q1 2025 sales were €8.8B, with China accounting for 42% of net sales. UBS raised ASML's price target to €2,350, citing strong growth prospects.

UBS analysts predict China will not develop a viable alternative to ASML's EUV lithography technology within the next decade. According to the analysts, China's progress is hindered by export restrictions and technological gaps. ASML, the sole producer of these advanced machines, is banned from selling them to China. UBS expects China to develop immersion DUV lithography machines within 2-5 years, which are less advanced but still crucial for chipmaking.

ASML shares fell 7% since July due to China competition concerns. UBS raised its price target to €2,350, citing 55% upside potential and a 10-year EUV tech gap for China. Latest quarterly revenue was $10.62B, EPS $8.65. Wall Street consensus is 'Moderate Buy' with avg target $1,970.33. Shares traded at $1,679.27, down 1%.