asml secures edge over rivals with intel high-na-euv delivery
Veldhoven, Friday, 31 January 2025.
ASML is set to deliver its first high-numerical aperture extreme ultraviolet (high-NA-EUV) lithography systems to Intel in the coming months. This delivery marks the beginning of ASML’s leap forward in cutting-edge chip manufacturing technology. This system, expected to majorly enhance Intel’s capabilities, will be integrated into Intel’s Oregon plant. The TwinScan EXE:5200 system boasts a numerical aperture of 0.55, up from traditional 0.33, allowing significantly smaller transistor structures. Intel’s early adoption of this technology reinforces its commitment to innovation in semiconductor production. ASML aims to maintain its dominance in the market amid rising competition from other players. With this technological advancement, ASML is not only fortifying its position but is also setting a high benchmark in the industry.
Record-breaking financial performance
ASML’s market position continues to strengthen with exceptional financial results in Q4 2024. The company reported total net sales of €9.3 billion and net income of €2.7 billion [7], significantly surpassing expectations. Bookings reached an impressive €7.09 billion [7], marking a substantial increase from €2.63 billion in the previous quarter. ASML’s shares responded positively, surging by 11% in early trading following the results announcement [7].
Strategic market expansion
The company’s growth trajectory remains robust with a 2025 revenue forecast between €30 billion and €35 billion [3]. This positive outlook is supported by increasing demand for advanced chip manufacturing capabilities, particularly in AI applications. CEO Christophe Fouquet emphasized that lower AI costs could drive increased applications and chip demand [3]. Despite geopolitical challenges, ASML maintains strong relationships with key customers, with 28% of sales directed to the US market [7].
Technical advancement and delivery timeline
The TwinScan EXE:5200 represents a significant technological leap, enabling transistors 1.7 times smaller and increasing packing density by 2.9 times [5]. The system’s delivery involves complex logistics, requiring over 250 transport crates, multiple cargo planes, and 20 semi-trailer trucks across 43 freight containers [5]. Intel plans to incorporate this technology into its 14A process, with mass production scheduled for 2025-2026 [5].
Market competition and industry impact
While facing market pressures, including Samsung’s decision to reduce its 2025 foundry capital expenditure by 50% to €3.37 billion [4], ASML maintains its competitive edge. Taiwan Semiconductor Manufacturing Company is expected to increase orders, projecting capital expenditure between €36.5 billion and €40.5 billion for 2025 [4]. Micron Technology’s planned increase in capital expenditure to €13.6 billion in 2025 [4] further supports ASML’s market position.