ASML Holding (ASML)
EUV lithography monopoly (ASML) — the sole maker of machines for sub-7nm chips; the deepest moat in tech
AI exposure 38% — derived from reported segment revenue, not asserted.
Where it sits
Silicon Layer → Semiconductor Equipment · figures rebased to Q2 2026, reported 2026-07-15
Deep-UV lithography scanners (ArFi immersion, KrF, i-line) leads 4 businesses in this sub-tier that together are 100% of revenue, so Semiconductor Equipment is effectively the whole company rather than one leg of it.
Reported segments
- EUV lithography systems — 40.1% of revenue
- DUV lithography systems — 28.1% of revenue
- Installed Base Management (service & upgrades) — 29.7% of revenue
- Metrology & Inspection — 2.1% of revenue
ASML (EUR 9.3B Q2 2026, 54.0% gross margin; FY2026 guided EUR 43-45B). Q2 mix: EUV 40.1% (57% of the EUR 6.564B of net system sales) = primary B1 Semiconductor Equipment, the leading-edge monopoly; DUV 28.1% (ArFi 29%, KrF 6%, ArF dry 4%, i-line 1% of system sales); Installed Base Management 29.7% (EUR 2.762B, guided +30% for 2026 as the EUV base compounds); Metrology & Inspection 2.1%. Sole supplier of EUV — no AI logic or HBM DRAM node exists without it.
How the 38% is built
- EUV lithography systems — 40.1% of revenue × 60% AI-driven (estimate). Every leading-edge AI logic and HBM DRAM node requires EUV, though the same tools also print non-AI leading-edge silicon
- DUV lithography systems — 28.1% of revenue × 20% AI-driven (estimate). Serves the whole industry including trailing edge; only the immersion layers of advanced nodes are AI-linked
- Installed Base Management (service & upgrades) — 29.7% of revenue × 25% AI-driven (disclosed). Service follows the installed base, which is far broader than its leading-edge slice
- Metrology & Inspection — 2.1% of revenue × 30% AI-driven (estimate). Yield control matters most at the advanced nodes where AI silicon is built
Investment read
Moat. Absolute monopoly on EUV lithography — the only company that can make machines for <7nm chips. No competitor exists or is close. The deepest moat in tech.
Bottleneck / pricing power. Ultimate upstream chokepoint — without ASML EUV there is no leading-edge AI silicon. Pricing power is total and now visible in the order book rather than only in theory: 2027 Low-NA EUV is close to fully covered with significant 2028 intake already booked, ~65 Low-NA shipments planned for 2026, and each High-NA tool runs several hundred million dollars. Gross margin was guided up to 54-56% for FY2026 from 51-53% on mix and fixed-cost absorption.
Role in the AI stack. The tool-of-tools — enables the entire leading-edge silicon layer.
Connected companies
- Taiwan Semiconductor (TSM) — ASML supplies: EUV/DUV lithography systems
- Intel (INTC) — ASML supplies: EUV lithography for 18A
- Samsung Electronics (SSNLF) — ASML supplies: EUV for memory + foundry
- Applied Materials (AMAT) — ASML competes with: Broad WFE peers but largely complementary — litho (ASML) vs deposition/etch (AMAT) are not substitutable; overlap only in WFE budget share and minor e-beam/metrology
- SK Hynix (SKHY) — ASML supplies: EUV/DUV for SK Hynix HBM/DRAM fabs
- KLA Corporation (KLAC) — ASML competes with: overlap only in metrology/e-beam inspection (ASML YieldStar/HMI vs KLA); otherwise complementary litho vs process-control
- GlobalFoundries (GFS) — ASML supplies: DUV lithography systems for GlobalFoundries fabs (GF does not use EUV)
- Micron Technology (MU) — ASML supplies: EUV (plus DUV) lithography for Micron DRAM — Micron discloses EUV insertion at its 1-gamma node (ASML is the sole EUV supplier), and ASML's Q2 2026 memory engine (75%+ FY2026 memory-systems growth)…
- Tower Semiconductor (TSEM) — ASML supplies: DUV lithography systems for Tower's specialty processes (no EUV — Tower is not leading-edge)
Others in Semiconductor Equipment
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