ASML reports record orders amid growing demand for AI technology

ASML Reports Record Quarterly Orders, Boosts Hopes for AI Boom Sustainability

Dutch tech firm ASML has reported a quarterly record in orders for its chip-making equipment, with net sales reaching 9.7 billion euros in the October-December period. The company booked orders worth 13.2 billion euros in the final quarter of 2025, more than half of which were for its most advanced extreme ultraviolet (EUV) lithography machines.

ASML’s net profit for the year was 9.6 billion euros, up from 7.6 billion euros in 2024. The company forecasts net sales of between 34 billion euros and 39 billion euros in 2026.

In a statement, ASML Chief Executive Officer Christophe Fouquet attributed the increase in orders to a “notably more positive assessment” of the market situation by the company’s chip-making customers, who expect strong AI-related demand. This has led to an increase in medium-term capacity plans and a record order intake.

Fouquet also announced that ASML would be cutting approximately 1,700 jobs, mostly at the leadership level, due to concerns about work processes becoming less agile. The company aims to restore its fast-moving culture and focus on engineering without being hindered by slow process flows.

ASML holds an effective monopoly on the production of machinery used by major technology companies such as TSMC, Samsung Electronics, and Intel to make advanced AI chips. The company’s share price surged following the announcement, with its stock up nearly 6 percent.

The news has been met with mixed reactions from analysts, with some expressing concerns about the sustainability of the investment boom in AI. However, others see the job cuts as a sign that ASML is focusing on efficiencies and different ways of working.

Source: Al Jazeera