ASML posts results; Intel Puts High NA EUV Into Production

Intel is first to ship logic chips using ASML’s High NA EUV lithography

By Mark LaPedus

ASML posted strong results for the quarter and also received a major boost from a major customer for its fledging High NA EUV technology.

Intel is first in the industry to ship high-volume logic chips using ASML’s High NA extreme ultraviolet (EUV) lithography scanners, according to ASML. Intel is currently using High NA EUV to manufacture a 2nm-class processor line, according to ASML.

ASML’s high-numerical aperture (high NA) EUV lithography tools are next-generation systems, which are designed to produce chips at the sub-2nm node and beyond. These scanners incorporate a 0.55 NA lens with 8nm resolutions. ASML’s High NA EUV scanners will enable chipmakers to print features 1.7 times smaller than the company’s 0.33 NA EUV scanners. But the technology is expensive—a High NV lithography tool sells for a staggering $400 million each.

ASML has been developing High NA EUV for several years, but the adoption rate has been slow. Intel has endorsed High NA EUV, but TSMC says that it has no plans to insert the technology in near term, because it’s too expensive.

In 2024, Intel and ASML completed integration of the industry’s first commercial High NA EUV lithography system at the company’s Hillsboro, Ore.-based R&D site.

More recently, Intel Foundry has been using ASML’s High NA EUV technology on Intel’s 18A process node to produce a subset of its Intel Core Ultra Series 3 processors. Specific Intel 18A layers are now dual-qualified on High NA EUV in Oregon.

Earlier this year, Intel launched its Core Ultra Series 3 processor line, marking the debut of the company’s first chips built on its new 18A process technology. Intel’s processor is codenamed Panther Lake. Introduced last year, Intel’s 18A process is a 2nm-class technology. It combines a gate-all-around (GAA) transistor architecture with a backside power delivery technology.

Not all are using High NA EUV in production. Micron, Samsung, Sk Hynix and TSMC are still evaluating the technology in one form or another. As stated, TSMC says that High NA EUV is too expensive and not required in the near term.

Instead, TSMC will continue to extend ASML’s current 0.33 NA EUV tools in the production environment. In fact, TSMC continues to be the largest buyer of ASML’s 0.33 NA EUV systems in the market. The foundry giant is expected to procure nearly half of ASML’s 0.33 NA EUV systems in 2027.

“Expectations for TSM capex have risen to $56-$60B this year, $80B in 2027 and $100B in 2028. TSM is increasing 3nm capacity through Fab 18, Arizona, possible Japan fab for 3nm and converting some 28nm to 3nm in Taiwan (Fab 15),” said Krish Sankar, an analyst at TD Cowen, in a research note. “We estimate TSM could secure 38 out of 88 EUV tools from ASML next year, which might be a bit below their demand of ~45.”

Meanwhile, ASML posted its financial results. In the second quarter of 2026, ASML reported sales of 9.3 billion euros (US$10.64 billion), compared to 8.767 billion euros (US$10.35 billion) in the previous quarter and 7.692 billion euros (US$8.92 billion) in the like period a year ago.

ASML reported a net income of 2.918 billion euros (US$3.33 billion) for the quarter, compared to 2.757 billion euros (US$3.26 billion) in the previous quarter and 2.290 billion euros (US$2.66 billion) in the like period a year ago.

“Strong end-market demand this year has motivated our customers to aggressively add capacity on their leading-edge nodes. A number of our customers have revised their capital expenditure plans upwards for the year, and our ability to increase output has allowed us to meet their requests for additional lithography systems,” said ASML President and Chief Executive Christophe Fouquet. “The dynamics are very similar in both advanced logic and DRAM, and the plans to build up capacity are equally aggressive.”

ASML continues to see strong demand for both its 0.33 NA EUV tools and 193nm lithography systems in the market. “ASML plans to raise EUV capacity from ~65 low-NA systems in CY26 to 85 systems in CY27 with systems nearly fully booked and enough confidence into CY28 demand to plan another 30% capacity add to ~110 systems,” TD Cowen’s Sankar said. “DUV demand is also improving with an expected 130 DUV immersion tools in CY26 (flat Y/Y) but plans to raise capacity 30% next year.”

There are other positive signs for ASML. “Foundry/logic demand is expected to grow 25% Y/Y in CY26 while memory is estimated to increase 75%,” Sankar said. “China region sales are still expected to decline to ~20% of total sales.”

ASML expects Q3 total net sales to be between 11.0 billion euros to 12.0 billion euros (US$12.54 billion to US$13.68 billion). ASML also raised its 2026 revenue outlook to 43 billion euros to 45 billion euros (US$49.0 billion to US$51.3 billion), up 35%-40% year-over-year versus the prior midpoint, according to TD Cowen.