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.

ASML Holding N.V., ASML

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.

Samsung said it will use the machines to produce DRAM memory chips starting in 2028, aiming to extend its memory scaling roadmap and improve production efficiency. TSMC set a later start date of 2030, targeting advanced chips where transistor architecture is becoming more complex due to AI workloads.

TSMC CEO C.C. Wei said the company believes in working through technical challenges early, before they become cost problems. TSMC accounts for roughly 16% of ASML’s total sales, according to Bloomberg, making its commitment a key signal for investors tracking High NA adoption.

Photomask Upgrade Adds More Upside

Beyond the machine commitments, all four companies, ASML, TSMC, Samsung, and Intel, agreed to move from the current 6-inch photomask standard to a larger 12-inch format.

Photomasks work like stencils, using light to print tiny circuit patterns onto silicon wafers. ASML Chief Technology Officer Marco Pieters said the larger mask size could lift High NA machine output by 40% while also making chip design easier.

Intel has been working on the 12-inch mask project for over three years as it builds out its manufacturing network. TSMC plans to start using High NA tools with standard 6-inch masks in 2030, then build a test line for 12-inch masks by 2031.

Wall Street Reaction

Barclays said the announcements “should provide more visibility on adoption which has been a key debate,” describing the news as “a positive” for the stock.

The bank also flagged that ASML faces a decision on whether to expand EUV capacity further beyond targets it has already set, noting that demand is “clearly strong.”

ASML has said it will add about 30% total EUV capacity in 2027 but has not given a recent forecast on High NA unit volumes specifically.

Wall Street analysts hold a Strong Buy consensus on ASML, based on six Buy ratings over the past three months. The average 12-month price target sits at $2,468 per share, implying around 44% upside from current levels.

Amsterdam-listed ASML shares were flat to slightly lower in early European trading before the US session opened.

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