ASML posts 11.7 billion euro Q3 sales, says 2027-28 supply won't meet demand

ASML, the Dutch company that makes the advanced lithography machines used to manufacture the world's most powerful computer chips, reported total net sales of 11.7 billion euros and net income of 5.0 billion euros for the third quarter of 2026 on Wednesday, 14 October 2026. The company said it sold 113 new lithography systems in the quarter and forecast fourth-quarter sales of 14.2 billion to 15.2 billion euros. It also warned that its supply as currently planned for both 2027 and 2028 will not fully meet customer demand, a sign of how strongly the artificial intelligence boom is driving orders for chipmaking equipment.

ASML sits at a choke point in the global technology industry. Every advanced chip, including the processors that run AI models, is made using lithography machines that print tiny circuit patterns on silicon wafers. ASML's results therefore act as an early signal of how much chipmakers such as TSMC, Samsung and Intel plan to spend on new production capacity.

The most striking part of the update is the warning on supply. When the maker of such critical equipment says it cannot fully meet demand for two years ahead, it suggests chipmakers expect demand for AI chips to stay high well into 2028. It also means that the pace at which new chip factories can come online may be limited by how quickly ASML can build and ship its machines.

ASML no longer publishes a quarterly bookings figure, so analysts looked elsewhere for signs of future orders. The jump in long-term customer prepayments, money paid or billed ahead of delivery, was read by market commentators as one of the clearest signals that customers are reserving future machines.

China's role is also changing. One market analysis estimated that China's share of ASML's machine sales fell from 42% a year earlier to 23%.

For India, the numbers matter because the country is trying to build its own chip manufacturing base. New fabs need lithography tools, and a supply crunch at ASML could affect timelines for projects anywhere in the world that are waiting for equipment.

Short-term: The results reinforce the view that AI-related demand is keeping chip equipment makers busy, which supports spending plans across the semiconductor supply chain.

Long-term: If ASML's supply stays tight through 2028, chipmakers may have to plan years ahead for equipment, and new fabs, including those in emerging chip hubs, may face longer waits for tools.

Who is affected: Chipmakers and their customers, AI companies that need more processors, investors in semiconductor stocks, and countries such as India building new chip plants.

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