ASML says strong chip orders signal AI spending boom has room to run

Anabelle Colaco
17 Oct 2026, 04:54 GMT+10

Demand for advanced chipmaking equipment is stretching years into the future, with ASML saying customers are already looking to place orders for 2029 and even 2030
The Dutch company, the world's biggest maker of equipment used to produce AI chips and advanced semiconductors, said October 14 that planned increases in its production capacity for 2027 and 2028 would not be enough to meet demand
ASML said in July that it planned to increase capacity by 30 percent in 2027 and by another 30 percent in 2028

AMSTERDAM, Netherlands: Demand for advanced chipmaking equipment is stretching years into the future, with ASML saying customers are already looking to place orders for 2029 and even 2030 as the artificial intelligence investment boom continues to drive semiconductor expansion.

The Dutch company, the world's biggest maker of equipment used to produce AI chips and advanced semiconductors, said October 14 that planned increases in its production capacity for 2027 and 2028 would not be enough to meet demand.

ASML said in July that it planned to increase capacity by 30 percent in 2027 and by another 30 percent in 2028.

CEO Christophe Fouquet said that the company was now seeing "a lot of order intake for 2028. But also, some strong interest to already place orders for 2029 and sometimes even 2030."

The outlook helped ease investor concerns that the surge in spending on AI infrastructure could be approaching a peak.

ASML's customers include TSMC, which manufactures chips for Nvidia, as well as Samsung, Intel, SK Hynix and Micron. The companies have been investing heavily to expand chip production.

"There were concerns that the AI trade was running out of steam," said Gordon Kerr, European macro strategist at KBRA, adding ASML's results showed "demand for chips remains strong, and infrastructure spending is likely to continue well into 2027".

ASML shares rose two percent on October 14. The stock has gained almost 70 percent this year, while the company is Europe's largest by market value at about €586 billion.

The company reported third-quarter net profit of 4.96 billion euros on net sales of 11.7 billion euros. It forecast fourth-quarter sales of between 14.2 billion euros and 15.2 billion euros, or US$15.9 billion to $17 billion.

ASML also raised its full-year sales outlook from at least 43 billion euros to 44 billion euros to 45 billion euros.

The company broke ground last month on a major expansion in Eindhoven, Netherlands, but the first phase will not be completed until 2029. ASML said it will have to find other ways to increase capacity before then.

CFO Roger Dassen said the company would address the shortage by upgrading existing equipment and selling new machines with higher throughput.

ASML will also begin raising prices in 2027, with the full effect becoming visible from 2028, Dassen said.

The company's customer base also includes Elon Musk's newcomer TeraFab. ASML is "still kicking the tires on the exact size of that (TeraFab) opportunity," Dassen said.

"Durable growth will continue into 2027 and 2028", said Ben Barringer, head of technology research at Quilter Cheviot. "...however, the market will begin asking the question of whether or not there will be any sign of a downturn from 2029 and what impact that has for ASML."