Bind Musk “Terafab”! ASML.US (ASML.US) expands production by 30% for two consecutive years and is still being sold out: EUV production capacity is almost sold out in 2027

The Zhitong Finance App learned that global lithography giant ASML.US (ASML.US) said that its 2027 and 2028 capacity expansion plans announced along with its second-quarter earnings report on Wednesday have taken into account the demand for its tools at the Terafab chip production facility that Elon Musk plans to build in Texas.

Chief Financial Officer Roger Dawson said during the conference call, “We're talking to all of our customers and we understand... what their construction plans are,” and “Terafab is part of those plans.”

According to Darson, the number of high-numerical aperture extreme ultraviolet lithographers (High-NA EUV) shipped worldwide is in the low single digits. This refers to the next generation of semiconductor lithography technology.

He said that if China is unable to expand its chip manufacturing capacity, production will shift to other locations because global demand for chips remains constant.

Dawson also said that ASML has almost completely sold out its 2027 EUV production capacity and has locked in a large number of 2028 EUV orders.

Based on strong performance momentum, Asmack raised its net sales forecast for the full year 2026 to 43 billion to 45 billion euros, and the gross margin forecast to 54% to 56%. This is the second increase in the year after the company raised its full-year forecast from 34 billion to 39 billion euros to 36 billion to 40 billion euros in April.

Demand for lithography machines is hot, and Asmack is improving delivery efficiency

Asmack CEO Christophe Fouquet said: “If we start the analysis in more detail from 2027, we will find that we are already able to receive almost all of the EUV orders we need in 2027. This is due to the fact that we increased our EUV production capacity by about 30% in 2027 compared to 2026.” He added: “Looking ahead to 2028, we have received a large number of EUV orders from customers. This also prompted us to seriously consider increasing EUV production capacity by another 30% in 2028. Of course, as EUV production capacity increases, so will DUV production capacity. Immersion lithography technology will also become critical. Therefore, we plan to increase production capacity by 30% in 2027 and 2028, respectively. ”

Fukai said, “Based on this momentum, we plan to increase our low numerical aperture (low NA) EUV production capacity of around 65 units by 30% in 2026, and we are looking to increase this capacity by another 30% in 2028. Similarly, in 2027, we plan to increase our DUV immersive production capacity of around 130 units by 30% in 2026, and are studying increasing this capacity by another 30% in 2028. Additionally, we are continuing to significantly expand our portfolio of upgraded products.”

As AI-driven demand soars, the company is working to reduce manufacturing and testing time for advanced lithography tools in the factory by about one-third.

ASML's cutting-edge extreme ultraviolet lithography (EUV) equipment is necessary for chip makers to make advanced semiconductors, and demand has surged due to artificial intelligence. It takes more than a year from order placement to delivery of EUV equipment, and a few quarters ago, the company began production in its clean room to delivery cycle (known as the production cycle) of about 22 weeks.

“We are now considering shortening the time to 15 to 16 weeks,” Chief Financial Officer Roger Dawson said on Wednesday. The company relies on numerous suppliers to manufacture its modular machines, and in addition to partnering with the supply chain, the company is also optimizing its own processes to achieve higher production capacity levels.

“We saw an opportunity to streamline the testing process while ensuring quality,” Dasson said. This means that machine cycle times in clean rooms can be reduced, “so we can produce more tools, and our customers are happy to accept that,” he added.

Fukai also discussed the demand for logic chips and DRAM chips seen by its customers, which in turn is driving demand for Asmack products. He also stressed that Asmat's customers are signing long-term agreements with their own customers.

Fukai said, “So if we look at market demand, that is, end market demand, this has prompted our customers to increase capital expenses while also accelerating all of their plans. We've seen this dynamic in the field of logic chips and DRAM. We are also seeing in both areas that our customers are entering into long-term agreements with their own customers, which really motivates them to make long-term commitments.”

Fukai said that Asmack expects its revenue in the field of advanced foundry logic chips to increase by about 25% this year, while revenue in the memory sector will increase by 75% this year.