ASML reported record third-quarter 2026 sales of €11.7 billion ($13.6 billion), up 25% from the previous quarter, as growing demand for AI chips continues to drive semiconductor equipment investment. Net income at the Dutch lithography equipment giant reached €5.0 billion, compared with €2.9 billion in the second quarter. The results highlight the accelerating investment in advanced semiconductor manufacturing and the mounting pressure on equipment suppliers to expand production capacity. For European chipmakers and the wider semiconductor supply chain, ASML’s outlook offers a clear indication of where manufacturing capacity and technology investments are heading through 2030. AI demand pushes ASML capacity to its limits ASML said customers are raising their equipment demand forecasts as they reassess the scale and duration of AI-related investments. Some chipmakers are already considering placing equipment orders for 2029 and 2030. The company now expects its planned production capacity for 2027 and 2028 to fall short of customer demand, despite previously announced expansion plans. “With such strong visibility and an order book momentum that continues to increase quarter on quarter this year, we now expect that our supply as currently planned for both 2027 and 2028 will not fully meet the demand of our customers2. Given this, we are investigating ways to increase capacity for 2028 beyond the 30% increase we previously communicated. In addition, we continue to provide significant wafer capacity to our customers through our productivity upgrade portfolio.” The statement from ASML CEO Christophe Fouquet points to further capacity expansion beyond the company’s existing plans for low-NA EUV and DUV immersion lithography systems. Lithography sales and upgrades accelerate ASML shipped 113 new lithography systems during the quarter, compared with 86 in Q2, alongside eight used systems. Installed Base Management revenue, covering services and equipment upgrades, increased to €3.3 billion from €2.8 billion in the previous quarter. Strong demand for productivity upgrades helped lift the company’s gross margin to 57.5%, up from 54%. Gross profit reached €6.7 billion, while basic earnings per share increased to €12.95 from €7.59 in Q2. ASML raises capacity ambitions for 2028 Looking ahead, ASML expects fourth-quarter sales of €14.2 billion to €15.2 billion, with a gross margin of approximately 57%. For the full year, the company forecasts revenue between €44 billion and €45 billion, with a gross margin around 56%. ASML also repurchased approximately €4.1 billion of shares during Q3 under its 2026–2028 buyback program and announced an interim dividend of €1.88 per ordinary share, payable November 4. With AI infrastructure investment showing little sign of slowing, ASML’s next challenge will be expanding lithography equipment output fast enough to meet chipmakers’ increasingly long-term capacity plans. The post ASML hits record €11.7 billion sales as AI chip demand surges appeared first on eeNews Europe .