ASML is on the verge of a critical technological breakthrough as its first chips manufactured using High-NA EUV lithography machines are expected within months. CEO Christophe Fouquet confirmed the timeline at an imec conference in Antwerp, noting that the initial outputs will include both logic and memory chips. Despite the advance, investor sentiment has been weighed down by the extremely high cost of the systems — up to $400 million each — and the cautious adoption cadence among key chipmakers.
The semiconductor industry is increasingly split over how quickly to embrace the new technology. Intel and SK Hynix have emerged as early adopters, with Intel integrating High-NA into its 14A process development and SK Hynix planning to use the tools for memory production. In contrast, TSMC, ASML’s largest customer, has publicly stated that the current-generation EUV remains more cost-effective for its immediate needs and will delay any High-NA deployment. This divergence is creating a fragmented manufacturing landscape that could pressure equipment suppliers and chip designers alike.
Financial markets reacted positively on Tuesday after UBS reinstated ASML as its top pick in the European semiconductor sector, raising its price target to €1,900 from €1,600. Analyst Francois-Xavier Bouvignies cited ASML’s underappreciated memory exposure and dismissed capacity bottleneck fears, projecting earnings per share of €48.42 in 2027 and €59.73 in 2028 — roughly 15–20% above consensus. The bullish note helped lift ASML shares by 3.5% in Amsterdam, partially offsetting earlier losses tied to cost concerns.
