ASML expands chipmaking tools beyond EUV lithography to capture booming AI chips market

Exclusive: ASML plots future of chipmaking tools for AI beyond EUV

SAN JOSE, California, March 2 (Reuters) - ASML Holding (ASML.AS), opens new tab has ambitious plans to expand its line of chipmaking equipment into several new products to capture more of the rapidly growing market for artificial intelligence chips, a senior executive told Reuters. More than a decade in development, ASML is the only maker of extreme ultraviolet, or EUV, equipment, which is crucial for Taiwan Semiconductor Manufacturing Co (2330.TW), opens new tab and Intel (INTC.O), opens new tab in manufacturing the world's most advanced AI chips. ASML has poured billions of dollars into developing the EUV systems, has a next-generation product nearing production and is researching a third potential generation. The Dutch company is looking to grow beyond its EUV roots and plans to expand into the market to make tools that can help glue and connect multiple specialized chips, called advanced packaging - a key building block for AI chips and the advanced memory that feeds them. As part of those plans, the company will deploy AI in its forthcoming businesses and legacy efforts. "We look, not just for the next five years, we look at the next 10, maybe 15 years," ASML Chief Technology Officer Marco Pieters told Reuters. "(We look at) what are potential directions the industry could take, and what would it require in terms of packaging, bonding, etc.?" The EUV machines ASML builds are used for lithography, the process of using light to print complex patterns onto silicon wafers to make chips. The company also plans to determine whether it can expand the maximum size of chips it can print beyond its current boundary - roughly the size of a postage stamp - which limits its speed. NEW TECH BOSS In October, the company promoted Pieters to CTO, replacing Martin van den Brink, who had a roughly 40-year run as head of the technology unit. ASML also said in January it reorganized its technology business to prioritize engineering roles versus management. Investors have priced into the stock the company's dominance in EUV and have lofty expectations for Pieters and CEO Christophe Fouquet, who was appointed in 2024. Shares trade at roughly 40 times forward earnings, compared with Nvidia (NVDA.O), opens new tab, which trades at about 22 times earnings. The $560-billion-market cap company's shares have gained more than 30% this year. ASML is stepping up plans to build machines that help package chips and beginning to develop chipmaking tools that can help build newer generations of advanced AI processors. "We're actually researching that - to what extent can we participate in it, or what we can add to that part of the business," Pieters said. Pieters, who has a background in ASML's software development effort, said as the company's tools get faster, its engineers will be able to use AI to speed up its machines' control software and the tools' inspection of chips as they are constructed. CHIPS LIKE SKYSCRAPERS Until the last couple of years, designers such as Nvidia and Advanced Micro Devices (AMD.O), opens new tab built chips that were essentially flat, like a single-story home. Increasingly, chips are becoming more like skyscrapers with multiple levels linked through nanometer-sized connections. Because of the stamp-sized limit, fusing chips in stacks or horizontally lets designers increase the speed at which chips can perform the complex calculations required for building large AI models or running chatbots such as OpenAI's ChatGPT. The complexity and accuracy required to build skyscraper-style chips has made packaging, once a low-margin volume business, a more lucrative part of manufacturing for companies like ASML. TSMC has used an advanced packaging technology to construct the most advanced Nvidia AI chips. "But we also see more of that advanced packaging is coming to the front end," Pieters said, referring to what TSMC and others are doing. "Accuracy is becoming more and more important." When Pieters examined the chip manufacturers' plans - including memory makers such as SK Hynix - it became clear there would be a need for additional machines to help companies manufacture things like chips stacked on top of one another. Last year, ASML disclosed a scanning tool called the XT:260 built specifically to help manufacture advanced memory chips used for AI and the AI processors themselves. The company's engineers are exploring additional machines "as we speak," Pieters said. "One of the things I'm doing is also looking at what could be a product portfolio in that direction," Pieters said. AI chips have significantly grown in size, and the company is examining additional scanner systems and lithography tools to make chips even larger. Because the scanning equipment uses expertise such as optics and know-how like the intricate ways a tool handles silicon wafers, it will give ASML an edge in making future machines, Pieters said. "It will co-exist next to what we've been doing for the last 40 years," he said. Reporting by Max A. Cherney in San Jose Editing by Rod Nickel Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Asia Pacific Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

ASML looks beyond EUV, plans new tools for larger chips and 3D packaging

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Forward-looking: For years, ASML has been synonymous with one technology: extreme ultraviolet lithography, or EUV - the painstakingly engineered process that makes today's most advanced chips possible. But as AI pushes semiconductors to new physical and economic limits, the Dutch company is preparing to expand beyond lithography itself. The future of AI hardware may depend not just on etching smaller transistors, but on rethinking how chips are built, packaged, and scaled. The company's next moves include building machines for advanced chip packaging and exploring ways to produce even larger silicon dies, shifting ASML from its narrow role as the world's sole EUV supplier into a broader supplier of AI-era chipmaking tools. CTO Marco Pieters, who took over in October 2025 after a 40-year tenure by Martin van den Brink, described the effort as a long-term strategy rather than a short-term adjustment. "We look not just for the next five years, we look at the next 10, maybe 15," he said in an interview with Reuters. ASML's EUV machines have been the foundation for TSMC and Intel as they push chip features well below 5 nanometers. After more than a decade of research and billions in development, ASML's second-generation EUV tools are near production, with a third in early research. But the limits of this success are increasingly clear. EUV tools currently print areas roughly the size of a postage stamp. That boundary constrains chip size and speed. Engineers at ASML are now exploring optical and mechanical redesigns to expand that printable field, potentially enabling the creation of physically larger, more powerful chips. What once seemed a routine manufacturing step: connecting chips to circuit boards - is now one of the semiconductor industry's most critical bottlenecks. As chipmakers like Nvidia, AMD, and memory manufacturer SK Hynix build ever-larger devices, they've begun layering chips vertically and horizontally, creating "skyscraper" architectures linked by microscopic bonds. Advanced packaging integrates multiple silicon dies into a single, unified component that communicates faster and consumes less power than a single monolithic chip. Companies like TSMC already use sophisticated packaging technologies to build Nvidia's flagship AI accelerators. For ASML, the shift presents both a challenge and a business opportunity. AI isn't just driving demand for ASML's customers, it's also reshaping how ASML builds and operates its own machines. Pieters said the company is now designing manufacturing equipment specifically for these multi-die systems - tools capable of handling the delicate alignment and bonding required for 3D packaging. "We're researching to what extent we can participate in it, or what we can add to that part of the business," he said. AI isn't just driving demand for ASML's customers, it's also reshaping how ASML builds and operates its own machines. Pieters, whose background is rooted in ASML's software divisions, said AI will be used to accelerate control algorithms and inspection processes within the company's future lithography and packaging tools. Those systems already collect vast streams of high-resolution optical data during every wafer pass. Improving their analysis with machine learning could reduce downtime and increase yield. The first product signaling this diversification arrived last year: the XT:260 scanner, designed for advanced memory chips used in AI applications. Engineers are now investigating additional systems that could extend those capabilities to even more complex logic and stacking operations. To focus more heavily on engineering, ASML streamlined its technology division and  Christophe Fouquet - CEO since 2024 - has aligned the corporate roadmap around expansion beyond EUV lithography. The confluence of optics, motion systems, and silicon handling gives ASML a technical foundation few can match. Pieters said this expertise will underpin new product lines for at least the next decade. He said the planned scanners, bonding gear, and control systems are meant to complement ASML's long-standing lithography products, adding: "It will co-exist next to what we've been doing for the last 40 years."

Exclusive: ASML says next-gen EUV tools ready to mass-produce chips, marking key shift for AI chip production

SAN JOSE, California, Feb 26 (Reuters) - ASML Holding's (ASML.AS), opens new tab next-generation chipmaking machine is ready for manufacturers to start bringing it into use for production at high volumes, a senior executive told Reuters, a big step for the chip industry. The Dutch company produces the world's only commercial extreme ultraviolet lithography (EUV) tools, which are a critical piece of equipment for chipmakers. This new tool will help chipmakers such as Taiwan Semiconductor Manufacturing (2330.TW), opens new tab and Intel (INTC.O), opens new tab produce more powerful and efficient chips, by eliminating several costly and complex steps from the chip-manufacturing process, data from ASML shows. ASML plans to release this data, which represents a key milestone, at a technical conference in San Jose on Thursday, the company's chief technology officer, Marco Pieters, told Reuters on Wednesday. It has taken ASML years to develop the costly, next-generation tools as chipmakers have attempted to determine at what point it makes economic sense to begin to use them for mass production. But given that the current generation of EUV tools is approaching the technical limit of their ability to make complex AI chips, the next-generation machines - called High-NA EUV tools - are key for the AI industry to improve chatbots like OpenAI's ChatGPT and help chipmakers deliver their AI chip roadmaps on time to meet surging demand. The new tools cost roughly $400 million, twice the cost of the original EUV machines. The High-NA EUV tools now experience limited downtime, have produced 500,000 dinner-plate-sized silicon wafers and can draw sufficiently precise patterns that make up the circuits on the chip, the ASML data shows, Pieters said. In combination, the three data points indicate the tools are ready for manufacturers. "I think that it's at a critical point to look at the amount of learning cycles that have happened," he said, referring to the number of tests that have been conducted on the machines by customers. Despite their technical readiness, it will take two to three years for companies to conduct enough testing and development to integrate them into manufacturing. "(Chipmakers) have all the knowledge to qualify these tools," Pieters said. Pieters also said the company has achieved roughly 80% uptime at the moment and plans to achieve 90% by the end of the year. The imaging data ASML plans to release is enough to convince customers to replace multiple steps with the older-generation tools with a single High-NA step, Pieters said. The 500,000 wafers the machines have processed have allowed the company to work out many of the kinks. Reporting by Max A. Cherney in San Francisco; Editing by Sayantani Ghosh and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

ASML plots future of chipmaking tools for AI beyond EUV

ASML Holding has ambitious plans to expand its line of chipmaking equipment into several new products to capture more of the rapidly growing market for artificial intelligence chips. ASML Holding has ambitious plans to expand its line of chipmaking equipment into several new products to capture more of the rapidly growing market for artificial intelligence chips, a senior executive told Reuters. More than a decade in development, ASML is the only maker of extreme ultraviolet, or EUV, equipment, which is crucial for Taiwan Semiconductor Manufacturing Co and Intel in manufacturing the world's most advanced AI chips. ASML has poured billions of dollars into developing the EUV systems, has a next-generation product nearing production and is researching a third potential generation. The Dutch company is looking to grow beyond its EUV roots and plans to expand into the market to ⁠make tools ⁠that can help glue and connect multiple specialized chips, called advanced packaging - a key building block for AI chips and the advanced memory that feeds them. As part of those plans, the company will deploy AI in its forthcoming businesses and legacy efforts. "We look, not just for the next five years, we look at the next 10, maybe 15 years," ASML Chief Technology Officer Marco Pieters told Reuters. "(We look at) what are potential directions the industry could take, and what would it require in terms of packaging, bonding, etc.?" The EUV machines ASML builds are used for lithography, the process of using light to print complex patterns onto silicon wafers to make chips. The company also plans to determine whether it can expand the maximum size of chips it can print beyond its current boundary - roughly the size of a postage stamp - which limits its speed. New tech boss In October, the company promoted Pieters to CTO, replacing Martin van ⁠den Brink, who had a roughly 40-year run as head of the technology unit. ASML also said in January it reorganized its technology business to prioritize engineering roles versus management. Investors have priced into the stock the company's dominance in EUV and have lofty expectations for Pieters and CEO Christophe Fouquet, who was appointed in 2024. Shares ⁠trade at roughly 40 times forward earnings, compared with Nvidia , which trades at about 22 times earnings. The $560-billion-market cap company's shares have gained more than 30% this year. ASML is stepping up plans to build machines that help package chips and beginning to develop chipmaking tools that can help build newer generations of advanced AI processors. "We're actually researching that - to what extent can we participate in it, or what we can add to that part of the business," Pieters said. Pieters, who has a background in ASML's software development effort, said as the company's tools get faster, its engineers will be able to use AI to speed up its machines' control software and the tools' inspection of chips as they are constructed. Chips like skyscrapers Until the last couple of years, designers such as Nvidia and Advanced Micro Devices built chips that were essentially flat, like a single-story home. Increasingly, chips are becoming more like skyscrapers with multiple levels linked through nanometer-sized connections. Because of the stamp-sized limit, fusing chips in stacks or horizontally lets designers increase the speed at which chips can perform the complex calculations required for building large AI models or running chatbots such as OpenAI's ChatGPT. The complexity and accuracy required to build skyscraper-style chips has made packaging, once a low-margin volume business, a more lucrative part of manufacturing for companies like ASML. TSMC has used an advanced packaging technology to construct the ⁠most advanced Nvidia AI chips. "But we also see more of that advanced packaging is coming to the front end," Pieters said, referring to what TSMC and others are doing. "Accuracy is becoming more and more important." When Pieters examined the chip manufacturers' plans - including memory makers such as SK Hynix - it became clear there would be a need for additional machines to help companies manufacture things like chips stacked on top of one another. Last year, ASML disclosed a scanning tool called the XT:260 built specifically to help manufacture advanced memory chips used for AI and the AI processors themselves. The company's engineers are exploring additional machines "as we speak," Pieters said. "One of the things I'm doing is also looking at what could be a product portfolio in that direction," Pieters said. AI chips have significantly grown in size, and the company is examining additional scanner systems and lithography tools to make chips even larger. Because the scanning equipment uses expertise such as optics and know-how like the intricate ways a tool handles silicon wafers, it will give ASML an edge in making future machines, Pieters said. "It will co-exist next to what we've been doing for the last 40 years," he said.

What's Going On With ASML Stock Tuesday? - ASML Holding (NASDAQ:ASML)

ASML Holding N.V. (NYSE:ASML) is charting a new course in the chipmaking industry by venturing into advanced packaging solutions for artificial intelligence (AI) chips. On Monday, the company revealed plans to integrate AI into its existing and future operations, aiming to enhance the performance and speed of its tools, which are critical for producing cutting-edge AI processors. ASML stock is slumping fast. Check the latest price here. ASML's Bold Move Into AI Chip Technology Reuters reports that ASML, known for its exclusive production of extreme ultraviolet (EUV) lithography machines, is exploring new avenues to expand its market share in the AI chip sector. The company is looking to develop tools that facilitate the connection of multiple specialized chips, a process known as advanced packaging. This move is expected to be a cornerstone for the future of AI chips and the sophisticated memory systems that support them. Chief Technology Officer Marco Pieters indicated that ASML is not just focused on immediate advancements but is also planning for the industry's trajectory over the next decade and beyond. This includes evaluating potential industry directions and the technological requirements for packaging and bonding. What Does ASML's New Strategy Mean For Investors? Pieters, who previously led ASML's software development, highlighted that the company's AI advancements could significantly accelerate the control software and inspection processes for its machines. This could enhance chip production efficiency, making ASML's offerings more attractive to leading semiconductor manufacturers. ASML's commitment to innovation is further underscored by its recent organizational changes. In October, Pieters was promoted to CTO, succeeding Martin van den Brink, who had a long tenure leading the company's technology division. Additionally, the company has restructured its tech business to emphasize engineering capabilities. As reported by Reuters, ASML's shares have risen significantly this year, reflecting investor confidence in its EUV technology and the leadership of Pieters and CEO Christophe Fouquet. The company's market valuation stands at approximately $560 billion, with shares trading at about 40 times forward earnings. Exploring The Future Of Advanced Packaging Solutions The evolving architecture of chips, which are increasingly designed as multi-level structures rather than flat components, has made advanced packaging a lucrative field. This shift is crucial for improving the computational speed needed for large AI models and applications such as OpenAI's ChatGPT. ASML is actively researching new scanner systems and lithography tools to accommodate the growing size of AI chips. The company's expertise in optics and silicon wafer handling is expected to provide a competitive edge in developing these future machines. Looking ahead, Pieters mentioned that ASML is considering what its product portfolio might look like in this new direction. The company's ongoing efforts in AI and chip packaging aim to complement its established EUV technology, ensuring it remains at the forefront of semiconductor manufacturing. ASML Price Action: ASML Holding shares were down 5.06% at $1351.49 during premarket trading on Tuesday, according to Benzinga Pro data. Over the past 12 months, the stock has gained 103%, outperforming the PHLX Semiconductor Index's 78% rise. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

ASML says next-gen EUV tools ready to mass-produce chips, marking key shift for AI chip production

The Dutch company produces the world's only commercial extreme ultraviolet lithography (EUV) tools, which are a critical piece of equipment ⁠for ⁠chipmakers. This new tool will help chipmakers such as Taiwan Semiconductor Manufacturing and Intel produce more powerful and efficient chips, by eliminating several costly and complex steps from the chip-manufacturing process, data from ASML shows. ASML Holding's next-generation chipmaking machine is ready for manufacturers to start bringing it into use for production at high volumes, a senior executive told Reuters, a big step for the chip industry. The Dutch company produces the world's only commercial extreme ultraviolet lithography (EUV) tools, which are a critical piece of equipment ⁠for ⁠chipmakers. This new tool will help chipmakers such as Taiwan Semiconductor Manufacturing and Intel produce more powerful and efficient chips, by eliminating several costly and complex steps from the chip-manufacturing process, data from ASML shows. ASML plans to release this data, which represents a key milestone, at a technical conference in San Jose on Thursday, the company's chief technology officer, Marco Pieters, told Reuters on Wednesday. It has taken ASML years to develop the costly, next-generation tools as chipmakers have attempted to determine at what point it makes ⁠economic sense to begin to use them for mass production. But given that the current generation of EUV tools is approaching the technical limit of their ability to make complex AI chips, the ⁠next-generation machines - called High-NA EUV tools - are key for the AI industry to improve chatbots like OpenAI's ChatGPT and help chipmakers deliver their AI chip roadmaps on time to meet surging demand. The new tools cost roughly $400 million, twice the cost of the original EUV machines. The High-NA EUV tools now experience limited downtime, have produced 500,000 dinner-plate-sized silicon wafers and can draw sufficiently precise patterns that make up the circuits on the chip, the ASML data shows, Pieters said. In combination, the three data points indicate the tools are ready for manufacturers. "I think that it's at a critical point to look at the amount of learning cycles that have happened," he said, referring to the number of tests that have been conducted on the machines by customers. Despite their ⁠technical readiness, it will take two to three years for companies to conduct enough testing and development to integrate them into manufacturing. "(Chipmakers) have all the knowledge to qualify these tools," Pieters said. Pieters also said the company has achieved roughly 80% uptime at the moment and plans to achieve 90% by the end of the year. The imaging data ASML plans to release is enough to convince customers to replace multiple steps with the older-generation tools with a single High-NA step, Pieters said. The 500,000 wafers the machines have processed have allowed the company to work out many of the kinks.

ASML's $400 Million Beast Arrives To Power The Next AI Leap - ASML Holding (NASDAQ:ASML)

With a $400 million price tag and years of development behind it, ASML Holding N.V. (NASDAQ:ASML) says its High-NA EUV machines are now prepared for mass production, promising to simplify chip manufacturing and accelerate the rollout of more powerful AI hardware. ASML, the only company that sells commercial EUV lithography systems, developed the new tool to help chipmakers such as Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) and Intel Corp. (NASDAQ:INTC) produce more powerful and energy-efficient chips. Chief Technology Officer Marco Pieters told Reuters the company will present new technical data at a conference in San Jose, highlighting the machine's progress. The High-NA systems, which cost about $400 million each, have processed 500,000 silicon wafers, achieved limited downtime, and demonstrated the precision required to create advanced chip circuits. At about $400 million per unit, the latest tools cost nearly twice as much as the company's earlier EUV machines, underscoring both their technological leap and premium positioning. ASML currently reports about 80% uptime and aims to reach 90% by year-end. While the machines are technically ready, Pieters said chipmakers will likely need two to three years of additional testing and development before fully integrating them into mass production. EUV Light Source Breakthrough ASML also advanced the performance of a critical EUV light source, a development that could increase chip output by as much as 50% by the end of the decade. The company said its system can consistently generate 1,000 watts under customer conditions and sees a path to 1,500 watts, with no fundamental barrier to eventually reaching 2,000 watts. With these improvements, customers could raise wafer production to about 330 per hour by decade's end, up from roughly 220 today. AI-Driven Growth Powers Record 2025 Strong AI-driven demand fueled ASML's 2025 results, with full-year net sales of $39.16 billion and net income of $11.5 billion. Fourth-quarter revenue reached $11.62 billion, and net bookings totaled $16.77 billion, more than half tied to EUV systems. The company ended the year with a backlog of about $46.47 billion. For 2026, ASML projects net sales between $40.72 billion and $46.7 billion and approved a share repurchase program of up to $14.37 billion through 2028. Over the past 12 months, the stock climbed over 106%, outperforming the PHLX Semiconductor Index's 75% gain. ASML Price Action: ASML Holding shares were down 0.87% at $1451.00 during premarket trading on Friday. The stock is approaching its 52-week high of $1547.22, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

ASML says next-gen EUV tools ready to mass-produce chips, marking key shift for AI chip production

SAN JOSE, California, Feb 26 (Reuters) - ASML Holding's next-generation chipmaking machine is ready for manufacturers to start bringing it into use for production at high volumes, a senior executive told Reuters, a big step for the chip industry. The Dutch company produces the world's only commercial extreme ultraviolet lithography (EUV) tools, which are a critical piece of equipment for chipmakers. This new tool will help chipmakers such as Taiwan Semiconductor Manufacturing and Intel produce more powerful and efficient chips, by eliminating several costly and complex steps from the chip-manufacturing process, data from ASML shows. ASML plans to release this data, which represents a key milestone, at a technical conference in San Jose on Thursday, the company's chief technology officer, Marco Pieters, told Reuters on Wednesday. It has taken ASML years to develop the costly, next-generation tools as chipmakers have attempted to determine at what point it makes economic sense to begin to use them for mass production. But given that the current generation of EUV tools is approaching the technical limit of their ability to make complex AI chips, the next-generation machines - called High-NA EUV tools - are key for the AI industry to improve chatbots like OpenAI's ChatGPT and help chipmakers deliver their AI chip roadmaps on time to meet surging demand. The new tools cost roughly $400 million, twice the cost of the original EUV machines. The High-NA EUV tools now experience limited downtime, have produced 500,000 dinner-plate-sized silicon wafers and can draw sufficiently precise patterns that make up the circuits on the chip, the ASML data shows, Pieters said. In combination, the three data points indicate the tools are ready for manufacturers. "I think that it's at a critical point to look at the amount of learning cycles that have happened," he said, referring to the number of tests that have been conducted on the machines by customers. Despite their technical readiness, it will take two to three years for companies to conduct enough testing and development to integrate them into manufacturing. "(Chipmakers) have all the knowledge to qualify these tools," Pieters said. Pieters also said the company has achieved roughly 80% uptime at the moment and plans to achieve 90% by the end of the year. The imaging data ASML plans to release is enough to convince customers to replace multiple steps with the older-generation tools with a single High-NA step, Pieters said. The 500,000 wafers the machines have processed have allowed the company to work out many of the kinks. (Reporting by Max A. Cherney in San Francisco; Editing by Sayantani Ghosh and Matthew Lewis)