ASML Holding NV is ambitiously planning to expand its chip manufacturing equipment portfolio into multiple new product lines to capture a larger share of the rapidly growing artificial intelligence chip market. After over a decade of research and development, ASML stands as the sole manufacturer of extreme ultraviolet lithography machines, which are essential for companies like Taiwan Semiconductor Manufacturing Company and Intel to produce the world's most advanced AI chips. Having invested billions in developing EUV systems, with its next-generation product nearing production and a potential third generation under study, the Dutch firm is now seeking growth beyond its EUV foundation. It plans to enter the market for tools that assist in bonding and connecting multiple specialized chips, known as advanced packaging—a critical building block for AI chips and the advanced memory they require. As part of these plans, the company will deploy artificial intelligence in both its future and traditional operations. "We are not only looking at the next five years; we are looking ten, even fifteen years ahead," stated ASML's Chief Technology Officer, Marco Peters. "We are considering where the industry might go and what will be needed in areas like packaging and bonding." ASML's EUV lithography machines are used in the photolithography stage of chip manufacturing, where light patterns intricate circuit designs onto silicon wafers. The company also aims to explore whether it can expand the maximum printable chip size beyond the current postage-stamp dimensions, which currently limit chip speed. Last October, the company promoted Peters to CTO, succeeding Martin van den Brink, who led the technology division for about 40 years. In January, ASML also announced a reorganization of its technology business, prioritizing engineering roles over management positions. Investors have already priced ASML's dominance in EUV into its stock and hold high expectations for Peters and CEO Christophe Fouquet, who took office in 2024. The stock trades at a price-to-earnings ratio of around 40, compared to Nvidia's ratio of approximately 22. Shares of the $560 billion company have risen more than 30% this year. ASML is accelerating plans to produce equipment that aids in chip packaging and has begun developing new chipmaking tools to support the next generation of advanced AI processors. "We are actively studying how we can participate or add value to this part of the business," Peters noted. With a background in ASML's software development, Peters added that as the company's equipment speeds increase, engineers will be able to leverage AI to enhance equipment control software and inspection tools used in chip manufacturing. Until a few years ago, chips designed by companies like Nvidia and Advanced Micro Devices were largely flat, resembling single-story houses. Today, chips are increasingly akin to skyscrapers, featuring multiple layers connected by nanoscale links. By stacking chips vertically or tiling them horizontally, designers can boost the speed at which chips perform complex computations needed for building large AI models or running chatbots like OpenAI's ChatGPT, overcoming the limitations of postage-stamp-sized chips. The complexity and precision required for building skyscraper-like chips have turned packaging—once a low-margin, high-volume business—into a more profitable segment of the manufacturing process for companies like ASML. TSMC already uses advanced packaging techniques to produce Nvidia's most advanced AI chips. "But we see more advanced packaging moving into the front-end," Peters remarked, referring to practices by TSMC and others. "Precision is becoming increasingly critical." While reviewing plans of chipmakers, including memory producers like SK Hynix, Peters observed a clear need for additional equipment to help companies manufacture products such as stacked chips. Last year, ASML introduced an inspection tool called the XT:260, specifically designed to aid in producing advanced memory chips for AI and the AI processors themselves. Peters mentioned that company engineers are exploring further equipment "even as we speak." "One thing I'm focusing on is studying the potential product portfolio in that direction," he said. As AI chips have grown significantly in size, the company is researching additional scanning systems and lithography tools to enable larger chip production. Peters emphasized that ASML's expertise in optics and the intricate handling of silicon wafers will provide a competitive edge in future equipment manufacturing. "This will complement the work we've done over the past 40 years," he concluded.