asml sees unprecedented demand for chip tech
Veldhoven, Monday, 23 June 2025.
asml, the dutch firm that dominates the market for lithography systems, has announced a surge in orders. this surge underscores the chip industry’s frantic efforts to boost production capacity. the orders reflect the ever-increasing demand for semiconductors in key sectors. these sectors include automotive, consumer electronics, and massive data centers. analysts predict asml’s average 1-year price target could reach €766.34 by June 2026.
asml’s market valuation
ASML’s market capitalization stands at €255.79 billion [1]. The company’s price-to-earnings (p/e) ratio is 29.4x, which is considered good value when compared to the peer average of 39.2x [1]. However, when compared to the European semiconductor industry average of 22.2x, ASML’s p/e ratio is considered expensive [1]. Despite this, ASML’s p/e ratio is still seen as good value when compared to its estimated fair price-to-earnings ratio of 41.5x [1].
analyst price targets
Analysts have provided varied price targets for ASML. The average 1-year price target is estimated at €766.34, with the share price around €650.40 as of June 2026 [1]. An earlier estimate from May 2026 projected an average 1-year price target of €770.44, with a share price of €653.90 [1]. The high price target reaches €970.00, while the low target is €500.00 [1].
geopolitical factors and market dynamics
The semiconductor industry faces increasing geopolitical pressures [6]. The U.S. government is considering further restrictions on exporting chipmaking tools to China [6]. These restrictions aim to prevent China from producing advanced chips for military applications [6]. Such measures could impact companies like ASML, potentially affecting their supply chains and market access [6]. These restrictions may also prompt chinese companies to develop domestic alternatives [7].
competitive landscape and supply chain shifts
U.S. restrictions on technology exports to China may lead to unintended consequences [7]. For instance, samsung engineers might need to install domestic etching machines in their chinese factories [7]. This situation could drive korean firms to diversify their etching machine orders to japanese and chinese suppliers [7]. Additionally, talent shifts are occurring, with engineers from tsmc’s nanjing plant moving to chinese firms, potentially strengthening china’s technological capabilities [7].
order book and ongoing projects
ASML is involved in numerous ongoing projects, reflected in the order books of engineering firms [2]. Yankee engineering, a cleanroom and electromechanical engineering company, has revealed that it has unbilled orders exceeding 40.6 billion yuan [2]. These projects include collaborations with companies like asml, material science, and dali light [2]. While this figure is lower than the 42.044 billion yuan at the end of last year, it remains significantly higher than the end of the first quarter of last year [2].