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ASML, the Dutch company that holds a quiet monopoly over the most advanced chipmaking equipment on earth, just posted Q2 2026 numbers that exceeded its own guidance. And now it’s doing something it rarely does: aggressively expanding production capacity to keep up with demand.
The company reported net sales of €9.326 billion and net profit of €2.9 billion for the quarter, with a gross margin of 54%. Those numbers were strong enough that ASML raised its full-year 2026 revenue forecast to between €43 billion and €45 billion, with gross margins expected to land in the 54% to 56% range.
Why the biggest chipmaking bottleneck is widening the pipe
ASML is the only company on the planet that makes extreme ultraviolet (EUV) lithography machines, the tools that TSMC, Intel, and Samsung need to manufacture the most advanced chips.
The company plans to boost production of its Low-NA EUV lithography systems by 30% in 2027, building on roughly 65 units it expects to ship in 2026. Management is already studying an additional 30% increase for 2028, alongside expanded capacity for its DUV immersion systems.
CEO Christophe Fouquet attributed the demand acceleration to two converging forces: artificial intelligence and cryptocurrency. Both sectors are consuming advanced logic and memory chips at rates that are forcing ASML’s customers to invest heavily in new fabrication facilities.
The EUV business alone is expected to see roughly 45% growth, a staggering figure for equipment that costs upward of $150 million per unit.
The crypto connection most people are missing
Every advanced chip that powers cryptocurrency mining rigs, AI-driven trading algorithms, and next-generation blockchain infrastructure starts its life on an ASML lithography system. The company sits at the very beginning of the supply chain that makes digital asset infrastructure possible.
Fouquet’s explicit mention of crypto-related trends as a driver of ASML’s expansion plans signals something important: the semiconductor industry now views digital asset growth as a durable demand driver, not a speculative blip.
What this means for investors
ASML’s raised guidance and capacity expansion plans paint a picture of a semiconductor upcycle that shows no signs of peaking. The company’s full-year revenue forecast of €43 billion to €45 billion represents significant growth, and the margin profile remains healthy in the mid-50% range.
The risk to watch is geopolitical. ASML’s equipment sits at the center of US-China tensions over semiconductor exports, and any tightening of export controls could affect the company’s addressable market.
There’s also the execution risk inherent in ramping production this quickly. EUV systems are among the most complex machines ever built, with over 100,000 components each. Scaling output by 30% isn’t like flipping a switch. But the Installed Base Management services that contributed to this quarter’s strong margins provide a recurring revenue cushion.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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