Lithography systems: Record orders for ASML due to AI

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ASML closes the year 2025 with record revenues: Fourth-quarter revenue of over 9.7 billion euros was the highest ever, and annual revenue also reached a record high of 32.7 billion. Compared to 2024, this represents an increase of almost 16 percent.

This is enough for an annual net profit of 9.6 billion euros (+27 percent), with a good 2.8 billion of that in the fourth quarter. As chip and memory manufacturers like TSMC, Intel, Samsung, SK Hynix, and Micron order lithography systems based on long-term demand, sequential quarter comparisons are more interesting for ASML than year-on-year comparisons. There is no holiday or Christmas-related seasonality at ASML. Fourth-quarter revenue increases by a good 29 percent compared to the third quarter, and net profit by almost 34 percent.

Over the entire year, ASML sold 300 new and 27 refurbished lithography systems. This is a total of 91 fewer than in 2024, but more complex models with extreme ultraviolet (EUV) exposure technology. In addition, ASML records further High-NA EUV systems, which cost around 350 million euros each. A normal EUV system costs between 170 million and 200 million euros.

EUV types are now also essential for memory manufacturers. They have reached the sixth DRAM generation of the 10-nanometer class and are exposing more and more chip layers with EUV technology.

4.7 billion euros were invested in research and development in 2025, a good nine percent more than in 2024.

Increasing demand with record bookings

Currently, bookings for lithography systems are skyrocketing: chip manufacturers have booked systems worth almost 13.2 billion euros, surpassing even previous records set during the COVID-19 pandemic. The previous record was around 9.2 billion euros in the fourth quarter of 2023. Compared to the third quarter of 2025, the booking value increased by a factor of 2.4.

Memory manufacturers seem to be slowly getting back on track in the wake of the memory crisis. Last quarter, they booked lithography systems worth 7.4 billion euros, unusually surpassing chip contract manufacturers for logic semiconductors such as processors. ASML now has a total backlog worth 38.8 billion euros. 40 percent, or 15.5 billion euros, of these orders come from memory manufacturers. High backlogs are common at ASML.

However, the effects will also take time to materialize here. On the one hand, ASML does not disclose the delivery dates for which the systems are ordered. On the other hand, it takes over a year after the delivery of a lithography system for chips to appear in stores from a new production line.

In addition, according to CFO Roger Dassen, interest in upgrades is also "quite high," for example, to increase the exposure speed of existing systems. Such upgrades, along with maintenance, are part of the so-called Installed Base Management Sales. In 2025, these accounted for 8.2 billion euros, a quarter of ASML's revenue.

In 2025, SK Hynix, Samsung, Micron & Co. still showed sluggishness. Their share of ASML's sales decreased slightly in 2025 compared to 2024 to 8.3 billion euros. Only in the fourth quarter did it pick up again with 2.3 billion, 17 percent more than in the third quarter.

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ASMLs Umsatz aufgeschlüsselt (5 Bilder)

AI boom expected to be sustainable

ASML CEO Christophe Fouquet emphasizes that the current growth is expected to continue for both chip contract manufacturers and memory manufacturers.

"In the last few months we have seen our DRAM customers, our Logic customers, starting to accelerate their planning-capacity and having these discussions with us," says Fouquet. "If I look at Logic first, so there we see our customers starting to be more comfortable about the sustainability of the long-term AI demand."

"When I look at DRAM, there also the demand is very strong for HBM [Editor's note: High-Bandwidth Memory for AI accelerators], of course, but also for DDR. This most probably will lead to a very tight supply, at least in 2026 and most probably beyond that."

Despite the growth, ASML plans to cut around 1700 of over 44,000 jobs, mainly at the management level. According to the company, this is in response to customer requests to streamline its own structures. ASML wants to reduce hurdles and become more flexible.

Further revenue record in 2026

In the current first quarter of 2026, ASML forecasts a slight revenue decline at best to 8.9 billion euros or at worst to 8.2 billion euros. However, for the entire year, ASML expects growth with revenues between 34 billion and 39 billion euros. ASML also announces a significantly increased dividend of 7.50 euros per share (+17 percent) and a new share buyback program covering up to 12 billion euros until the end of 2028.

The stock market is reacting mixed to the business report. The share initially jumped up to ten percent, but has since fallen back to the previous day's level.

(mma)