ASML (ASML) Stock; Inches Higher Amid Global EUV Technology Race

TLDRs;

• ASML raises EUV power to 1,000 W, boosting chip production by 50% by 2030.

• The new system overcomes a longstanding bottleneck in high-volume chip manufacturing.

• Rising AI chip demand is straining global supply chains.

• ASML strengthens its market lead amid global EUV technology competition.

Shares of ASML (ASML) inched higher on Monday following the Dutch chip equipment maker’s announcement of a major technological improvement to its extreme ultraviolet (EUV) lithography systems.

ASML Holding N.V., ASML

The company said the new upgrade could increase chip production by up to 50% by 2030, a development that has implications for both the semiconductor industry and the accelerating global race for advanced technology.

EUV Upgrade Boosts Production Capacity

ASML revealed that it has enhanced the power of the light source in its EUV lithography machines from 600 watts to 1,000 watts. This upgrade is expected to dramatically reduce exposure times during the chip-making process while lowering manufacturing costs. ASML’s lead technologist, Michael Purvis, confirmed that the system can sustain full power under standard customer operating conditions, signaling readiness for mass production applications.

Currently, ASML’s machines process roughly 220 wafers per hour. The new upgrade is projected to increase throughput to approximately 330 wafers per hour by the end of the decade, providing a significant boost to chipmakers like TSMC and Intel, who rely on ASML’s machinery for advanced semiconductor fabrication.

Decade-Long Tech Race Intensifies

The development comes amid heightened global competition to advance EUV technology. The United States and China are both making strategic moves: the US is supporting domestic EUV startups and tightening export restrictions to China, while China aims to build its independent lithography capabilities.

ASML, headquartered in the Netherlands, remains the only commercial supplier of EUV machines capable of producing the most advanced semiconductors, giving it a critical position in this geopolitical technology race.

Early EUV machines ran at around 250 watts, limiting output to roughly 125 wafers per hour. Reaching 1,000 watts represents a significant leap, allowing manufacturers to improve production efficiency without needing full system replacements. For high-NA EUV machines, which print finer features but expose smaller wafer areas, faster stage motion enabled by this upgrade helps maintain factory output, bridging the gap between precision and scale.

AI Demand and Energy Efficiency Implications

The boost in EUV power coincides with surging demand for chips driven by artificial intelligence applications. Data center expansion and AI workloads are putting pressure on wafer output and electricity usage worldwide. Industry experts warn that global energy consumption from AI servers could reach 7% of total electricity usage, comparable to India’s national consumption.

By enabling more advanced, energy-efficient chips, ASML’s upgraded systems can help mitigate some of these energy constraints, allowing transistors to do more while consuming less power.

Strategic Edge Amid Global Competition

The upgrade further strengthens ASML’s strategic position in the semiconductor supply chain, ensuring that it remains the preferred supplier for leading chipmakers worldwide. As technology nations continue to prioritize self-sufficiency in advanced chip manufacturing, the company’s innovations are likely to influence both market dynamics and geopolitical negotiations in the coming decade.

With this EUV breakthrough, ASML not only advances chip production capabilities but also reinforces its essential role in a technology landscape increasingly defined by AI, efficiency, and international competition.

The post ASML (ASML) Stock; Inches Higher Amid Global EUV Technology Race appeared first on CoinCentral.