ASML is exploring increasing its EUV machine production to over 110 units by 2028, driven by robust AI demand, with orders already being placed for that year. This indicates strong long-term demand for advanced chips despite recent market jitters about AI growth, suggesting continued capital expenditure by chipmakers.
ASML is actively planning to significantly ramp up its EUV machine production to over 110 units by 2028, a substantial increase from its 2026 capacity of 65 machines. This expansion is directly attributed to 'very very strong' AI demand, with customers already booking machines for 2028. This signals robust long-term capital expenditure plans from major chip manufacturers like TSMC and Intel, who are ASML's primary customers. For traders, this indicates sustained growth in the semiconductor equipment sector, particularly for ASML, despite recent market concerns about the pace of AI development. The long lead times for these orders (2028) suggest that major players are confident in continued AI-driven chip demand, offering a positive long-term outlook for ASML and its key customers, while potentially mitigating short-term market volatility.