• ASML (ASML) forecasts sustained chip supply tightness driven by AI demand, with record bookings and upbeat sales guidance into 2026.
  • The Dutch lithography giant says it has expanded capacity to avoid becoming a bottleneck, but overall semiconductor supply will remain constrained.
  • Full-year 2025 net sales reached about €32.7 billion, with net income of €9.6 billion, and 2026 sales guidance of €34-39 billion.

AI Demand Keeps Chip Supply Tight

ASML’s message is clear: AI-driven chip demand is so strong that semiconductor supply will remain tight for the foreseeable future. The Dutch semiconductor equipment maker reported fourth-quarter bookings far above expectations, reflecting chipmakers’ rush to expand capacity for AI hardware.

“We see a very strong business environment,” said Christophe Fouquet, ASML’s CEO, in a statement. The company’s lithography systems are essential for manufacturing leading-edge logic and memory chips, and the surge in AI infrastructure spending is driving orders.

Record Backlog and Capacity Expansion

ASML reported full-year 2025 net sales of approximately €32.7 billion and net income of about €9.6 billion. It guided 2026 sales to roughly €34 billion to €39 billion, with gross margins around 51% to 53%, according to Reuters. The company has invested heavily to expand capacity and improve productivity, aiming to avoid becoming the industry’s choke point—a role it played during the pandemic-era chip shortage.

“Strong AI demand means chips will be a supply-limited market for quite a while,” Fouquet said, according to people familiar with the matter. The comment underscores the persistent tightness across the semiconductor supply chain, from chip designers to foundries.

Implications for the Industry

While AI investment is sustaining demand, supply constraints can keep capital spending elevated, benefiting equipment makers like ASML but pressuring downstream device makers and cloud operators. The situation mirrors the pandemic-era shortage, but this time the driver is less consumer electronics and more AI servers, accelerators, and memory.

Geopolitical risks remain, with export controls on China-linked equipment sales influencing ASML’s market access. However, the current demand story is primarily fueled by AI infrastructure spending, which appears durable for now.

For investors, ASML’s commentary reinforces the narrative that AI capex is a durable growth engine. Chipmakers and cloud providers face continued pressure to secure tools and capacity early, while consumers may see faster product rollouts but also higher costs if supply remains constrained.

This article was updated to include details on ASML’s 2025 financial results and 2026 guidance.