Monday, May 23, 2022

ASML will only be able to complete 60% of Chipmaking Tool Orders this Year due to high demand

- Advertisement -

Manufacturers of semiconductors are quickly expanding manufacturing capacity and purchasing new equipment as chip sales are estimated to reach 427.7 billion units this year. The demand for lithography tools is so high that ASML, the world’s largest scanner manufacturer, has issued a warning that just 60% of orders for deep ultraviolet (DUV) litho machines will be satisfied.

“Although the current macroeconomic environment creates uncertainty, we believe the fundamental growth drivers remain intact,” said Peter Wennink, chief executive of ASML, at the company’s quarterly conference call with analysts and investors, per SeekingAlpha. “We continue to see unprecedented customer demand across all market segments, from both advanced and mature nodes. We are running at maximum capacity and expect demand to exceed supply well into next year.”

This year, ASML aims to export 55 extreme ultraviolet (EUV) scanners and about 240 DUV scanners (approximately 14 EUV and 60 DUV machines per quarter). Meanwhile, it has a DUV scanner backlog of over 500 units, implying a two-year product order lead time for a new DUV scanner (used to produce semiconductors employing both mature and leading-edge nodes). Meanwhile, ASML emphasises that product order lead time is meaningless for the time being because the company need additional capacity and time to construct it to make more tools.

Here’s what ASML had to say about its Supply problem

(Image credit: ASML)

“We can probably only ship at this moment in time, this year only 60% of the DUV demand,” said Wennink. “So, anything that comes on that is driven by our maximum capacity. And anything beyond that, indeed, is a matter of capacity lead time, not the [product order] lead time.”

By 2025, ASML plans to grow its capacity to 90 EUV 0.33 NA systems and 600 DUV systems (both immersion and dry). In the medium term, it also plans to obtain a capacity of roughly 20 EUV High-NA (0.55 NA) systems.

Chipmakers will continue to undersupply for several quarters due to a lack of lithography scanners. ASML reported €3.5 billion in net sales and €695 million in net profitability in the first quarter of 2022.

- Advertisement -

also read:

Samsung Leads the Smartphone Market with a 24% Share


- Advertisement -
Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles

More To Consider

Stay Connected

Boat Lifestyle [CPS] IN

Hot Topics


Latest Articles



Adblocker detected! Please consider reading this notice.

We've detected that you are using AdBlock Plus or some other adblocking software which is preventing the page from fully loading.

We don't have any banner, Flash, animation, obnoxious sound, or popup ad. We do not implement these annoying types of ads!

We need money to operate the site, and almost all of it comes from our online advertising.

Please add to your ad blocking whitelist or disable your adblocking software.