Semiconductor equipment giant ASML Holding NV has achieved a significant breakthrough in the light source technology for its extreme ultraviolet lithography machines. This new development has the potential to increase chip production output by 50% by the year 2030.
Michael Purvis, a chief technology officer at ASML, stated in an interview at the company's offices near San Diego that this is not merely a temporary demonstration. He described it as a robust system capable of consistently producing 1000 watts of power, meeting all the same requirements seen at customer sites. ASML is the sole global manufacturer of extreme ultraviolet lithography machines. Leading chip foundries, including Taiwan Semiconductor Manufacturing Company and Intel Corporation, depend on its equipment to produce advanced processors.
However, the market landscape faces potential challenges. Late last year, several startups, such as Substrate and xLight, received $150 million in funding from the U.S. government and are attempting to challenge ASML's market dominance. Jorge J. Roca, a professor at Colorado State University, noted that the current power level for EUV light sources is 600 watts, making the jump to 1000 watts a substantial advancement.
Purvis expressed the company's vision to continue driving technological progress beyond the 1000-watt milestone to further solidify its market position. He indicated that the company sees a clear path towards achieving 1500 watts and identified no fundamental obstacles preventing progress to 2000 watts.
In Monday's late trading session, ASML's stock experienced a slight decline. At the end of January, the company released its financial results for the fourth quarter of 2025. ASML continues to benefit from massive investments in artificial intelligence infrastructure, reporting strong performance. The quarterly results showed record-breaking new orders, and the company forecasted continued sales growth for 2026.
ASML maintains an optimistic outlook for the future. Its clients, major global chip manufacturers, express confidence in the sustainability of AI-related demand and ongoing capacity expansion, which in turn drives order growth for ASML.
Concurrently, despite reporting robust and sustained growth, ASML announced a workforce reduction plan affecting approximately 1,700 positions. The layoffs primarily impact technical and IT departments, mainly targeting management roles in the Netherlands, with some effects on U.S. operations. This reduction represents about 4% of the company's total current workforce.