ASML Stock Jumps as Samsung and TSMC Lock In $400M Machine Orders
TLDR
- TSMC and Samsung have committed to using ASML’s High NA EUV lithography machines, joining Intel as customers for the $400 million tools.
- Samsung plans to use High NA EUV for DRAM memory production starting in 2028; TSMC expects to adopt the technology by 2030.
- All four companies agreed to upgrade from 6-inch to 12-inch photomasks, which could boost machine output by 40%.
- ASML stock has gained around 120% over the past year, and Wall Street holds a Strong Buy consensus with an average price target of $2,468.
- Barclays called the announcements “a positive,” saying they give ASML more visibility on High NA adoption.
ASML picked up two major customer commitments on Tuesday as Samsung and TSMC both confirmed plans to use its High NA extreme ultraviolet (EUV) lithography machines for future chip production.
ASML stock was up around 1.6% in early trading following the news, building on a 120% run over the past 12 months.
The High NA machines cost around $400 million each and use wider lenses to print circuit lines up to three times smaller on silicon wafers in a single pass. That kind of precision is increasingly in demand as chipmakers push into more complex designs for AI hardware.
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