ASML Raises EUV Production 36% as AI Data Center Demand Grows

Dutch chip equipment maker ASML plans to increase production of extreme ultraviolet (EUV) lithography machines by approximately 36% in 2026, driven by rising demand from AI data center expansion, according to the company’s latest guidance.

ASML aims to manufacture at least 60 standard EUV systems in 2026 and 80 in 2027, compared to its historical production rate of 40 to 50 systems annually. The company raised its 2026 sales forecast to 40 billion euros (US$46.9 billion) from 36 billion euros (US$42.2 billion) on April 15. ASML also plans to invest US$2.2 billion in facilities and infrastructure in 2026, representing a 20% increase from the previous year, as the company seeks to avoid becoming a bottleneck for customers amid equipment shortages, according to Christophe Fouquet, CEO of ASML.

High-NA EUV Systems Drive Revenue Growth

ASML’s revenue expansion extends beyond higher shipment volumes of standard EUV machines. The company is commercializing High-NA EUV systems, an advanced form of EUV technology that produces smaller, more powerful chips for AI applications. Each High-NA tool costs more than 350 million euros (US$410 million).

This higher-margin product line is gaining wider commercial adoption. Intel has completed acceptance testing for its first High-NA systems for mass production, while Samsung has begun receiving High-NA systems for its upcoming 2-nanometer chip manufacturing operations. Beyond logic chipmakers, memory manufacturers SK Hynix and Micron are expanding EUV capacity for High Bandwidth Memory (HBM), a memory type used in AI servers.

ASML’s Production Capacity Shapes Global AI Infrastructure Pace

While ASML states its intention to avoid becoming a bottleneck, the company’s EUV output remains a limiting factor for how rapidly global AI computing capacity can expand. This position gives ASML significant influence over infrastructure timelines. Record net bookings reflect AI data center expansion plans at major technology companies—Microsoft, Meta, Alphabet, and Amazon—through orders placed with chipmakers. ASML’s order book and backlog provide insight into AI infrastructure spending trends that can span multiple years.

The effects of ASML’s production constraints extend upstream, affecting data center projects, power procurement agreements, and power generation planning, all of which depend on leading-edge chips requiring EUV tools.

China Exposure Expected to Decline

ASML expects reduced exposure to China in 2026. The company projects China will represent approximately 20% of its sales in 2026, declining from 33% in 2025, independent of any additional U.S. restrictions.