ASML controls over 100% of the market for extreme ultraviolet (EUV) lithography equipment, the only technology capable of patterning semiconductor nodes at 7 nm and below. Its machines are integral to cutting-edge chip production at leading foundries such as TSMC, Intel and Samsung. No competitor—neither Nikon nor Canon—offers a commercially viable EUV system, creating an effective stranglehold on the supply of high‐resolution patterning tools. This proprietary position is reinforced by a portfolio of more than 16,000 patents and a supply chain that spans precision optics, vacuum technology and high‐power lasers, each representing multi-year barriers to entry for any potential rival.

As global chipmakers accelerate investment in AI, 5G and high-performance computing, ASML’s order backlog recently surpassed €50 billion, up 30% year‐on‐year. Management projects mid-teens percentage revenue growth in fiscal 2026 despite export restrictions to certain regions, driven primarily by EUV system deliveries and expansion of deep ultraviolet (DUV) tool shipments. Analysts forecast annual earnings growth of approximately 25% over the next five years, underpinned by ramp-up of high-numerical‐aperture (High-NA) EUV systems and sizeable logic and memory capex commitments—including a recently announced $56 billion investment by a major Taiwanese foundry for 2026 capacity build‐out.

ASML’s Installed Base Management (IBM) business—comprising system upgrades, field service, spare parts and software—generated over 20% of total revenue in 2025 and is projected to grow at a 12% compound annual rate through 2027. Rising adoption of second-generation EUV tools has created recurring revenue streams from preventive maintenance and advanced metrology modules. This segment now serves more than 120 EUV systems worldwide, with service agreements extending up to ten years, ensuring high gross margins and recurring cash flow that insulate the company from wafer-fab cyclicality.