ASML Installed Base Sales Jump 31.8% as EUV Service Demand Grows

KLA Corporation is benefiting from accelerating artificial intelligence infrastructure spending, which is driving higher investments in leading-edge foundry and logic technologies and boosting demand for its process-control solutions. In fiscal 2026, the Semiconductor Process Control segment's revenues increased 12% year over year, and overall fiscal 2026 revenues rose 12% year over year to $13.58 billion. During the fourth quarter of fiscal 2026, management raised its calendar 2026 wafer-fabrication equipment market estimate, including advanced packaging, to the low-$150 billion range, up from its previous $140 billion-plus view and approximately $120 billion in calendar 2025. KLAC expects second-half 2026 revenues to be approximately 20% higher than the first half, aided by high-performance computing, high-bandwidth memory, increasing extreme ultraviolet adoption in DRAM and advanced packaging technologies such as hybrid bonding, and said backlog was expected to reach about $12.5 billion. The company faces intensifying competition from Applied Materials, which expects its process diagnostics and control business to grow more than 50% in calendar 2026, and from ASML, which expects advanced foundry and logic revenues to rise about 25% in 2026 and extreme ultraviolet revenues to increase roughly 45%.

Taiwan Semiconductor Manufacturing has moved its 2nm process into commercial production and raised its capital expenditure targets to support the rollout. The chipmaker said the higher spending is preparation for an intensifying global semiconductor arms race among leading foundries and chip designers. The accelerated 2nm commercialization keeps TSMC aligned with chip designers that need leading-edge capacity for AI and high-performance computing, and the bigger budget gives it more room to secure large multi-year supply commitments from major customers. One early indicator to watch is how quickly 2nm and related advanced nodes contribute a rising share of wafer revenue as new lines ramp up, including whether customer wins such as the MediaTek 2nm decision broaden into multiple large-volume programs that keep those advanced fabs near targeted utilization levels from 2026 onward.

ASML Holding is exploring whether it can push EUV production beyond 110 systems in 2028, according to JPMorgan analysts cited by Reuters. The company is nearly sold out for 2027, when capacity reaches at least 80 EUV machines, so hitting 110 systems in 2028 would mean lifting annual output by at least 37.5% from that level. JPMorgan said supplier capacity is not the main constraint, with the bigger question being how quickly ASML can assemble these enormously complex machines without compromising execution. The financial engine is already running hot: ASML generated 8.9 billion in second-quarter sales, delivered a 54% gross margin and earned 2.9 billion in net income, while High-NA adoption is expected to start contributing in 2028. The U.S. shares gained approximately 1.6% to $1,626.48 Thursday, and the stock trades 28.86% above the roughly $1,260 GF Value estimate.