United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 20-F
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
for the fiscal year ended December 31 , 2025
Commission file number 001-33463
(Exact Name of Registrant as Specified in Its Charter)
The Netherlands
(Jurisdiction of incorporation or organization)
(Address of principal executive offices)
Telephone: +31 40 268 3938 E-mail: jim.kavanagh@asml.com
(Name, Telephone, E-mail, and / or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class Trading SymbolName of each exchange on which registered
(nominal value €0.09 per share)
Securities registered or to be registered pursuant to Section 12(g) of the Act:
None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
Indicate the number of outstanding shares of each of the issuer’s classes of
capital or common stock as of the close of the period covered by the annual report.
(nominal value €0.09 per share)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
If this report is an annual or transition report, indicate by check mark if the registrant
is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes ☐ No ☒
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically
every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company.
See definition of "large accelerated filer,” “accelerated filer" and “emerging growth company" in Rule 12b-2 of the Exchange Act.:
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected
not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting
Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared
or issued its audit report.
Yes ☒ No ☐
If securities are registered pursuant to Section 12 (b) of the Act, indicate by check mark whether the financial statements of the registrant included in the
filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive- based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrant has used to prepare
the financial statements included in this filing:
International Accounting Standards Board ☐ Other ☐
If "Other" has been checked in response to the previous question, indicate by check mark
which financial statement item the registrant has elected to follow.
Item 17 ☐ Item 18 ☐
If this is an annual report, indicate by check mark whether the registrant is a
shell company (as defined in Rule 12b-2 of the Exchange Act)
Yes ☐ No ☒
Name and address of person authorized to receive notices and communications from the Securities and Exchange Commission:
James A. McDonald
Skadden, Arps, Slate, Meagher & Flom (UK) LLP
22 Bishopsgate, London, England EC2N 4BQ
ASML Annual Report 2025 | 3 |
Financial performance | Risk and security |
ASML is a leading innovator in the global
semiconductor ecosystem. Working
closely with our customers and partners,
we provide the hardware, software and
services that help chipmakers create
more powerful, affordable and energy-
efficient microchips. These chips power
modern life and help address some
of humanity’s toughest challenges.
We keep powering
technology forward...
…through customer collaboration. | …through cutting- edge physics. |
Read more about this story |
…through collective innovation. | …through diverse, inspired talent. |
Read more about this story |
…using the potential of AI. | …while aiming to reduce environmental impact. |
Read more about this story |
Read more about this story |
Read more in Highlights online > | ||
Our 2025 online report highlights key information from this pdf. |
1. Strategic report | ||
Special note regarding forward- looking statements | ||
At a glance – 2025 overview | ||
In conversation with our CEO | ||
Our business | ||
Our holistic approach to lithography | ||
Our products and services | ||
Our marketplace | ||
Our business strategy | ||
Deepen customer trust | ||
Extend our technology and holistic product leadership | ||
Strengthen ecosystem relationships | ||
Create an exceptional workplace | ||
Drive operational excellence | ||
Deliver on ESG sustainability | ||
Our business model | ||
Engaged stakeholders | ||
Financial performance | ||
Message from our CFO | ||
Financial performance KPIs | ||
Long-term growth opportunities | ||
Risk and security | ||
Understanding ASML’s risk management framework | ||
How we manage risk | ||
Risk factors | ||
Information security | ||
2. Corporate governance | ||
Corporate governance | ||
Corporate governance at a glance | ||
Board of Management | ||
Supervisory Board | ||
Other Board-related matters | ||
AGM and share capital | ||
Financial reporting and audit | ||
Compliance with corporate governance requirements | ||
Supervisory Board report | ||
In conversation with the Chair of the Supervisory Board | ||
Supervisory Board focus in 2025 | ||
Meetings and attendance | ||
Composition and skills | ||
Evaluation | ||
Supervisory Board committees | ||
Financial statements and profit allocation | ||
Remuneration report | ||
In conversation with the Chair of the Remuneration Committee | ||
Board of Management remuneration at a glance | ||
Remuneration Committee | ||
Board of Management remuneration | ||
Supervisory Board remuneration | ||
Other information | ||
3. Sustainability statements | ||
Limited assurance report of the independent auditors on the Sustainability statements | ||
General disclosures | ||
Basis for preparation | ||
ESG sustainability governance | ||
ESG sustainability at a glance | ||
Value chain and ecosystem overview | ||
Environmental and human rights due diligence | ||
Impact, risk and opportunity management | ||
Environmental | ||
Energy efficiency and climate action | ||
Circular economy | ||
EU Taxonomy | ||
Other disclosures: Water management in our own operations | ||
Social | ||
Attractive workplace for all | ||
Responsible value chain | ||
Innovation ecosystem | ||
Valued partner in our communities | ||
Governance | ||
ESG integrated governance | ||
Reference table | ||
4. Financial statements | ||
Consolidated financial statements | ||
Reports of independent registered public accounting firms | ||
Consolidated statements of operations | ||
Consolidated statements of comprehensive income | ||
Consolidated balance sheets | ||
Consolidated statements of shareholders’ equity | ||
Consolidated statements of cash flows | ||
Notes to the Consolidated financial statements | ||
Other appendices | ||
Definitions | ||
Exhibit index | ||
A definition or explanation of abbreviations, technical terms and other terms used throughout this Annual Report can be found in the Definitions section. In some cases, numbers have been rounded for readers’ convenience. This report comprises regulated information within the meaning of articles 1:1 and 5:25c of the Dutch Financial Markets Supervision Act (Wet op het Financieel Toezicht). The sections Strategic report, Sustainability statements (except for the Limited assurance report of the independent auditor on the Sustainability statements), and subsections Corporate governance and Supervisory Board report, together form the Management Report. In this report the name ‘ASML’ is sometimes used for convenience in contexts where reference is made to ASML Holding N.V. and/or any of its consolidated subsidiaries, as the context may require. References to our website and/or video presentations in this Annual Report are for reference only and none nor any portion thereof are incorporated by reference in this report. © 2025-2026, ASML Netherlands B.V. All Rights Reserved. |
ASML Annual Report 2025 | 5 |
Financial performance | Risk and security |
Special note regarding forward-looking statements
General
This Annual Report and related discussions
contains statements relating to our business,
expected results, business and industry
trends, environmental targets, and other
matters that are “forward-looking” within the
meaning of the Private Securities Litigation
Reform Act of 1995. You can generally
identify these statements by the use of words
like “may”, “will”, “opportunity”, “potential”,
“could”, “should”, “confident”, “project”,
“believe”, “prospects”, “anticipate”, “expect”,
“plan”, “estimate”, “forecast”, “model”,
“aim”, “seek”, “intend”, “continue”, “commit”,
“target”, “future”, “progress”, “goal” and
variations of these words or comparable
words. They appear in a number of places
throughout this Annual Report and include
statements with respect to: expected trends,
plans, expectations, strategies, priorities,
goals, prospects and outlook, expected
financial results, including expected results
for Q1 including expectations with respect
to net sales, gross margin, R&D costs, SG&A
costs, and expected financial results for full
year 2026, including expected full year 2026
total net sales and growth, gross margin and
annualized effective tax rate, sales by market
segment, EUV and non-EUV sales and net
service and field option sales and expected
drivers thereof, and other full year 2026
expectations and outlook, expectations with
respect to expected net sales growth in 2026
and other statements with respect to outlook
and expected drivers thereof, statements
made at our 2024 Investor Day, including
revenue and gross margin opportunity,
model, opportunity and potential for 2030
and annual growth in sales 2025-2030 and
expectations on growth in semiconductor
end markets, statements made in the section
entitled “Long-term growth opportunities”,
expected capital expenditures and R&D
spending targets and plans, expected business
and industry trends and outlook, including
expected semiconductor industry size and
trends and trends in markets served by our
customers, expected trends in product mix
and geography, expected growth in the
semiconductor market and industry and
ecosystem and expectations of worldwide
semiconductor sales and growth by 2030,
expected GDP outlook, business environment
trends, including expected demand,
expected business growth, expected growth
in global wafer capacity, statements with
respect to AI, including goals for use of AI in
our portfolio and the expected impact of AI
demand on capacity buildup, our business,
industry and results, expected benefits of
our investment in Mistral AI, statements
with respect to EUV adoption, including with
respect to EUV and DUV sales, electrification
and the energy transition, expected growth
in semiconductor end markets and market
opportunity for 2030 and outlook CAGR
from 2025 to 2030 and key drivers and
global trends expected to fuel semiconductor
market growth in 2026 and in the longer
term, statements made in the section entitled
“Macroeconomic and geopolitical trends”,
Moore’s Law, expected trends in customer
demand, export control policy and regulations
and expected impact on us, our plans to
increase capacity, expectations about the
use of our systems by customers,
customer plans, product roadmaps and
customer roadmaps, our expectation that
lithography will continue to be at the heart of
customer innovation, expected increase in
critical lithography exposures, statements
with respect to our product portfolio,
expected productivity and other attributes
and benefits of our systems, intentions with
respect to grants of performance shares, our
environmental, social and governance (ESG)
and sustainability strategy, plans, commitments,
projections, pathway and targets, including
emissions and waste reduction aims,
commitments and targets and our expectations
about meeting or being on track to meet
these targets and other ESG goals and
targets, recycling and refurbishment initiatives,
energy-saving and renewable energy use
strategies and targets, including plans and
targets to achieve greenhouse gas neutrality
and emissions reductions targets, our target
to achieve zero waste from operations to
landfill and incineration and target dates to
achieve those targets, assumptions underlying
our projections related to ESG targets and
reliance on suppliers to meet ESG goals to
enable us to meet our ESG goals, plans to
purchase renewable energy and carbon
credits, potential for semiconductors to reduce
greenhouse gas emissions, plans for our
systems to use less energy and our energy
savings plans and diversity and other ESG
targets and commitments, capital allocation
policy and cash return and dividend policy
and statements about our new share buyback
program and our proposed dividend for 2026
and other non-historical statements.
These forward-looking statements are not
historical facts, but rather are based on current
expectations, estimates, assumptions and
projections about business and future financial
results, and readers should not place undue
reliance on them. Forward-looking statements
do not guarantee future performance, and
actual results may differ materially from
projected results as a result of certain risks
and uncertainties. These risks and uncertainties
include, without limitation, those described
under the section entitled “How we manage
risk – Risk factors”. These forward-looking
statements are made only as of the date
of this Annual Report. We do not undertake
to update or revise the forward-looking
statements, whether as a result of new
information, future events or otherwise.
Regarding emission reduction targets
This Annual Report contains statements
relating to our approach to and progress
on achieving certain energy efficiency
and greenhouse gas emissions reduction
targets, including our ambition to achieve
greenhouse gas neutrality.
References related to “greenhouse gas
neutral” for scope 1, 2 and categories 6
and 7 (our own activities) of scope 3 mean
remaining emissions, after ASML’s efforts
to reach its GHG emission reduction targets,
are compensated for by the same amount of
metric tons of carbon credits that are verified
against recognized quality standards.
Compensation of emissions outside our own
activities is dependent on the value chain.
Unless otherwise indicated, information
contained in this Annual Report concerning
greenhouse gas emission reduction targets
is based on our internal environmental
management system implemented to monitor
energy use and emissions, as well as publicly
available information, including the guidance
from the Greenhouse Gas Protocol for
the calculation of the GHG emissions,
the recommendations of the Task Force
on Climate-related Financial Disclosures
(TCFD) and certain conversion factors.
Given that such data in the Sustainability
statements is derived from various sources,
is processed differently across our operating
subsidiaries and departments, and depends
on certain estimates and assumptions, there
is an inherent degree of uncertainty in the
estimations of such data. You are cautioned
not to give undue weight to such data.
Forward-looking information concerning
greenhouse gas emissions and greenhouse
gas neutrality are subject to qualifications
and the uncertainties as set forth under
“Special note regarding forward-looking
statements—General” in this Annual Report.
ASML has been helping microchip
manufacturers power technology forward
since 1984. Our holistic lithography
solutions, software and services help
chipmakers achieve their highest
yields and best performance.
Our purpose
Unlocking the potential of people
and society by pushing technology
to new limits.
Our vision
We enable groundbreaking
technology to solve some of
humanity’s toughest challenges.
Our mission
Together with our partners,
we provide leading patterning
solutions that drive the
advancement of microchips.
 88% Customer satisfaction survey score |
 €4.7bn Research & Development |
 5,100 Total number of suppliers |
 €32.7bn Total net sales |
 52.8% Gross margin |
 €8.5bn Returned to shareholders |
 535 System sales in units |
 > 44,000 Total employees (FTEs) |
 21% Women in our workforce (headcount) |
 143 Nationalities |
ASML Annual Report 2025 | 7 |
Financial performance | Risk and security |
At a glance – 2025 overview (continued)
 0 kt Net scope 1 and 2 CO2e emissions |
 11.5 Mt Net scope 3 CO2e emissions |
 90% Reuse rate of parts returned from the field and factory |
 €1,750 Amount invested in communities (per employee), including employee giving |
Our values | ||||||
We challenge By questioning the status quo and pushing boundaries, keeping technology moving forward. | We collaborate By tapping into our collective potential together with our partners and stakeholders, expanding our knowledge and skills, learning from each other and creating better solutions. | We care By acting with integrity and respect, and providing a safe, inclusive and trusting environment where our people can learn and grow. |
Global scale | Asia China Japan Malaysia Singapore South Korea Taiwan | EMEA Belgium France Germany Ireland Israel Italy Netherlands United Kingdom | North America Arizona California Colorado Connecticut Idaho Massachusetts New Mexico New York Oregon Texas Utah Virginia | ||
60+ Locations | 3 Continents |
Empowered colleagues | ||
We promote a culture of ownership, where people feel empowered to act and be accountable. | ||
Our commitment to sustainability | |||
E | We aim to help expand computing power while minimizing energy use, emissions and waste. | ||
S | We aim to deliver responsible growth that benefits all our stakeholders. | ||
G | We aim to act on our responsibilities and anchor them across our entire business through integrated governance, engaged stakeholders and transparent reporting. | ||
ASML Annual Report 2025 | 8 |
Financial performance | Risk and security |
In conversation with Christophe Fouquet
President, Chief Executive Officer and Chair of the Board of Management
Christophe Fouquet President, Chief Executive Officer and Chair of the Board of Management |
“Innovation is the
engine of ASML –
the key to both
our past and future
successes.”
ASML Annual Report 2025 | 9 |
Financial performance | Risk and security |
In conversation with Christophe Fouquet (continued)
President, Chief Executive Officer and Chair of the Board of Management
Christophe Fouquet discusses the principal themes of the year, the achievements that gave him most satisfaction and how ASML aims to maintain its performance in the years ahead while meeting the needs of a diverse group of stakeholders | |
Q | Looking back at the year, what were the most significant milestones and challenges? |
In 2025, the far-reaching impact of artificial
intelligence (AI) on society and our industry
became clear. At first, we believed that AI
would drive demand from only a limited
portion of our customer base. At the end of
the year, we saw that new and significant
demand for AI was starting to fuel capacity
build-up across our broad customer base –
a powerful trend that we believe will continue
in 2026 and beyond.
We have seen strong execution of our
technology roadmap across the business,
most particularly in EUV with our TWINSCAN
NXE:3800E system which continues to be
adopted by advanced Logic and DRAM
customers due to its higher productivity and
cost of technology benefits. DRAM has been
particularly remarkable this year, as the work
we have done to reduce the cost of our
EUV per exposure through increased maturity
and productivity led to increased adoption.
We have also achieved outstanding progress
on EUV 0.55 NA, with a number of customers
reporting that it is now more mature than
EUV 0.33 NA was at the same stage of
development. After almost 10 years of
tremendous work from so many people in
ASML, we have released our first TWINSCAN
EXE:5200B in full specification to our
first customer.
Furthermore, in line with our commitment
to support customers in the 3D integration
space, we were pleased to ship ASML’s
first advanced packaging product, the
TWINSCAN XT:260, which delivers up to
four times the productivity of existing
solutions, and we will continue exploring
further opportunities in this growing field.
The outcome of our endeavors is clear to
see in the performance of the business,
which is explained in full elsewhere in this
annual report. Sales grew to €32.7 billion,
up by 15.6% over 2024. The gross margin
was 52.8%, up by 1.5 percentage points
from 2024, and we returned €8.5 billion to
shareholders. Our backlog currently stands
at a healthy level of €38.8 billion. These
results have been achieved in the context
of a high degree of geopolitical and market
uncertainty, which our team has navigated
with care and expertise. None of this would
have been possible without our great team
of committed colleagues around the world.
The year was also characterized by
ongoing work to make sure that our extensive
environmental, social and governance (ESG)
plans underpin our commitments to customers,
employees, suppliers, shareholders and
society. We have met our target to be
greenhouse gas neutral for scope 1 and 2,
and our engagement in the community has
more than quadrupled in the last two years.
I am also pleased to see the strong involvement
of our colleagues in these efforts.
ASML Annual Report 2025 | 10 |
Financial performance | Risk and security |
In conversation with Christophe Fouquet (continued)
President, Chief Executive Officer and Chair of the Board of Management
 | |
Our guiding principle is to always ask where we can add the most value and have the greatest impact for our customers, both today and in the future.” | |
Christophe Fouquet | |
President, Chief Executive Officer and Chair of the Board of Management | |
 | |
Q | What technological breakthroughs have given you the greatest sense of pride? | |||
If I had to pick just one, then it would be
EUV, where, through major technological
innovation, we made progress on reducing
the cost of technology for our customers,
which led to improved lithography intensity,
particularly in DRAM.
Looking at 0.33 NA EUV, we successfully
carried out some major changes to our
TWINSCAN NXE:3800E, delivering a huge
jump in performance in comparison with the
TWINSCAN NXT:3600D from 160 wafers per
hour to 230 wafers per hour. This system is
now fully adopted by our customers thanks
to the very hard work and collaboration of
so many ASML employees.
In terms of High NA EUV, the dynamics
around productivity, imaging and overlay
performance are very positive. By the end
of the year, our customers had run more than
400,000 wafers on High NA EUV systems.
We continued to move forward on qualifying
this system for high-volume manufacturing
and we demonstrated full specification of the
TWINSCAN EXE:5200B at a customer site.
That was a key milestone.
Turning to DUV, one of the year’s
pivotal moments was the evolution in our
approach to developing these systems,
with an increasing focus on improving quality
and cost efficiency, as well as advancing
technology. This is a subtle but important
shift that we believe will enable us to better
serve our customers by listening to their
real needs and providing the appropriate
solutions. This also illustrates the ability of
our team to adjust to the evolving needs of
our customers.
Our holistic lithography team is raising
the bar across many products, but I would
like to particularly highlight progress on multiple
e-beam (multibeam). We are now experiencing
positive traction with our multibeam system,
with the platform now at a level of maturity
where it can be considered for high-volume
manufacturing. We believe performance is
excellent – a tribute to our team which has
done a great job, working very closely with
customers, and in the next year I expect
multibeam to be adopted more extensively
by the market.
Finally, 2025 saw us enter a landmark
partnership with Mistral AI. We have invested
€1.3 billion in Mistral AI as lead investor and
hold an approximately 11% share on a fully
diluted basis in the company. This agreement
has laid the foundation for a long-term
collaboration to explore the use of AI models
across our product portfolio as well as
research, development and operations.
The aim is to benefit our customers with
faster time-to-market and higher performance
holistic lithography systems, while also
making ASML more efficient.
Q | How will the appointment of a new CTO support innovation at ASML? | |||
Innovation is the engine of ASML – the
key to both our past and future successes
– and in 2025, we appointed a new Chief
Technology Officer (CTO) succeeding Martin
van den Brink who retired in 2024. With over
25 years of experience at ASML, most recently
as Executive Vice President for Applications,
Marco Pieters was the outstanding candidate
for the role. The Supervisory Board intends to
appoint Marco as a member of the Board of
Management per the 2026 AGM.
Marco and I have worked together for many
years, and I look forward to continuing our
relationship. We believe his appointment will
add even more focus and more bandwidth to
our innovation capabilities and is another
example of our dedication to supporting our
customers in driving their technology roadmaps.
ASML Annual Report 2025 | 11 |
Financial performance | Risk and security |
In conversation with Christophe Fouquet (continued)
President, Chief Executive Officer and Chair of the Board of Management
Q | ASML has a long-standing commitment to ESG. What progress did you make in 2025? | |||
We believe that leading the way on ESG
issues has always been the right thing to
do for all our stakeholders as well as for the
planet we all share. Over the years, we have
established and systematically executed
plans to achieve clear ESG targets, and
this continued at pace during 2025.
Turning first to the ‘E’ in ESG, the energy
consumption of an EUV machine is a long-
term challenge. Today, the energy consumption
per wafer pass has fallen by 57% since the
shipment of the first system for high-volume
manufacturing in 2018, and we are now targeting
a further 30-40% reduction over the next five
to ten years. In our supply chain, emissions
have decreased. However, more effort is
needed to reach our ambitious target.
AI growth fuels concerns related to energy
consumption by data centers. Global
electricity supply is projected to grow over
the next 10 years, but if we extrapolate the
current data on energy demand from leading-
edge AI models, that is not fast enough. To
address this, there will need to be both more
efficient AI models and improved
semiconductors. If we do not act together as
an industry, emissions from the production of
semiconductors are forecast to increase by a
factor of four by 2030. This is one of the key
challenges ASML and the industry as a whole
have to face, and with urgency.
The social element of ESG has seen us
continue to develop numerous community
partnership programs across a wide range of
our global locations. In particular, we support
many STEM (science, technology, engineering
and math) education projects, and we were
proud to celebrate our 500th school partnership
during the year. We also invest in innovation,
for example by supporting organizations such
as imec, a leading research and innovation
hub in nanoelectronics and digital technologies.
During 2025 we extended this relationship
by signing a strategic partnership agreement
to strengthen collaboration on emerging and
societal challenges, and to develop initiatives
focused on sustainable innovation in Europe.
Closer to home, one of our key aims is to be a
positive force in the communities around us. We
know that our rapid growth can pose challenges
for a location such as the Veldhoven area close
to our main campus in the Netherlands,
particularly with regard to affordable housing.
We have therefore continued to invest in a range
of housing projects that will help local people
also experience the value we bring.
In terms of Governance, 20% of the long-
term incentive plan for our leadership team is
made up of environmental and social metrics,
which means that bonuses awarded to our
senior management are directly linked to how
the business has performed on ESG matters.
The feedback we receive from organizations
that monitor ESG performance is very positive,
frequently positioning ASML as a leader in
our industry.
Q | Can you give some examples of how ASML has strengthened relationships with stakeholders over the last year? |
Strong and mutually supportive stakeholder
relationships are absolutely central to our
ambitions. We have performed well in this
regard – but we know that we can do even
better. To this end, we have further tightened
our already sharp focus on two key areas in
recent times. Firstly, around our customer
interactions, under the leadership of Jim
Koonmen we continue to roll-out our customer
team model, with teams that work more closely
with customers than ever before. This move
is already bearing fruit, and compared to 2024,
our annual customer satisfaction survey score
went further up from 86% to 88%, and our
scores have increased on all topics, for all
customers – indicating increased customer
satisfaction and willingness to work with us.
Secondly, under the leadership of Wayne Allan,
we have been driving a transformation around
the supply chain, to make sure we can work
strategically with all our suppliers – not just
a select few – on long-term targets around
technology, cost, quality and sustainability.
When it comes to our employees, input
from the most recent employee engagement
survey demonstrates a clear demand for us to
simplify our processes, encourage ownership
and create conditions where people can
achieve their full potential.
As with any company that grows rapidly,
we need to be mindful that the way we have
grown does not slow us down. The feedback
from our colleagues, our suppliers and our
customers shows that our ways of working
have, in some cases, become less agile.
Engineers in particular have expressed their
desire to focus their time on engineering,
without being hampered by slow process
flows, and restore the fast-moving culture
that has made us so successful.
We believe it is important to address these
issues in 2026 so that we are well prepared
for future growth and well positioned to
continue to deliver for our customers. As a
result, in January 2026 we announced our
intent to strengthen our focus on engineering
and innovation in critical areas of our
company through the streamlining of the
Technology and the IT organizations.
As our full-year 2025 financial results
demonstrate, we are choosing to make
these changes at a moment of strength
for the company. Improving our processes
and systems will allow us to innovate
more and innovate better, generating
further responsible growth for ASML
and our stakeholders.
I realize that, as a result of proposed changes
to the Technology and IT organization, some
roles – mainly at the leadership level – may
no longer be required. At the same time,
to retain our engineering capability, we will
create new engineering jobs to strengthen
existing technology projects and embark
on new ones to support our own and our
customers’ growth plans.
ASML Annual Report 2025 | 12 |
Financial performance | Risk and security |
In conversation with Christophe Fouquet (continued)
President, Chief Executive Officer and Chair of the Board of Management
While this will allow some of our impacted
colleagues to move to new roles, we have
to acknowledge that this could result in a net
reduction of 1,700 positions. We are
committed to acting responsibly – with care,
speed, transparency and fairness – and to
supporting our employees through this
change.
Q | How can ASML continue to stand out as an attractive employer for innovation talent? | |||
Our culture – what we do, how we do it,
how we behave – can play a major role here.
First of all, this industry is still by far one of
the most attractive in the world, and I think
that a lot of people understand that ASML,
together with our partners, is working to
enable products and solutions that can solve
complex societal challenges. Secondly, we
are a vibrant, exciting home of innovation
where ambitious, talented people – and I
am not just talking about engineers but also
other disciplines – can be part of something
tremendously rewarding and make a real
difference to the world. Finally, we need to
continue to make ASML a great place to
work, by further improving our existing
facilities but also continuing to build state
of the art buildings for our employees. In 2025,
we opened a new and vibrant office in Korea
and formally inaugurated our new technical
training academy in Phoenix. We also
finalized our plan for our new Eindhoven
campus, and plan ground breaking in 2026
to secure our future in the region.
Q | How do you continue to drive innovation at ASML? | |||
Our guiding principle is to always ask
where we can add the most value and have
the greatest impact for our customers, both
today and in the future. Our core business of
holistic lithography remains extremely critical
for customers and therefore sits at the heart
of our innovation efforts.
However, there are also adjacent areas
where the skills and technologies we have
developed for holistic lithography can support
customers. For example, as Moore’s Law
continues, and as 2D shrink slows down,
3D integration challenges have become a
very important issue for our customers. As
a result, we have tasked the team to also
drive 3D integration. We saw an early result
of this focus in 2025, when we shipped the
first i-line system supporting advanced
packaging, the TWINSCAN XT:260.
Going forward, we believe the new partnership
with Mistral AI lays foundations that will allow
us to improve our products, our processes,
our efficiency and our performance.
Q | How do you see 2026 shaping up, and what challenges do you expect? | |||
If you look at the last two years – at the
economy, at geopolitics, at some of the
transitions that we have seen in the industry
– it is clear that we have been living in a time
of uncertainty. But the flip side to uncertainty
is opportunity. If you can navigate uncertainty,
opportunity can unfold – and we believe
wide-ranging opportunities for our industry,
for society and for ASML are rooted in the
powerful shift to AI which we believe will
continue to benefit us in 2026 and beyond.
We believe the long-term prospects for ASML
and our broader industry are excellent especially
as AI presents both significant opportunities
and unique challenges for innovation.
We can attribute our success to our customer
dedication, engineering talent and collaborative
approach to the ecosystem. Our ability to
innovate and execute has generated substantial
benefits for our customers and suppliers, our
colleagues and our investors.
Of course, we value everyone working at
ASML and we regret having to lose any
Our success will be built on the passion, talent and determination of our people.” |
Christophe Fouquet |
President, Chief Executive Officer and Chair of the Board of Management |
colleague as a result of the intended changes
to the Technology and IT organizations. The
success of ASML is built on the contributions
of everyone working here. While these
changes are never easy, I believe they are
necessary to allow ASML to remain as agile
and competitive as possible in a rapidly
evolving industry.
I would like to end by thanking all our people
across all our locations for their hard work
over the last year. I have been proud to lead
such inspiring teams, and I look forward
to working alongside them through the
opportunities and challenges that lie ahead.
ASML Annual Report 2025 | 13 |
Financial performance | Risk and security |
Our
business
Our holistic approach to lithography | |||
Our products and services | |||
Our marketplace | |||
Our business strategy | |||
Deepen customer trust | |||
Extend our technology and holistic product leadership | |||
Strengthen ecosystem relationships | |||
Create an exceptional workplace | |||
Drive operational excellence | |||
Deliver on ESG sustainability | |||
Our business model | |||
Engaged stakeholders | |||
Lithography – using light to print tiny, intricate patterns on silicon –
is fundamental to the mass production of microchips. It enables the
semiconductor industry to continually shrink transistor size and develop
novel chip architectures, packing more functionality into ever-smaller
chips and supporting the continuing evolution of Moore’s Law.
Moore’s Law and the evolution
of chipmaking
In 1965, Intel co-founder Gordon Moore
predicted that the number of transistors in
an integrated circuit (IC) would double every
year, later revising this to every two years.
‘Moore’s Law’, often regarded as a self-
fulfilling prophecy, set the pace for the
semiconductor industry. The expectation of
continual transistor doubling drove exponential
growth in computing power, reduced costs
and accelerated technological innovation.
Today, physical limitations make it more
challenging to shrink transistors further.
However, the industry continues to boost
performance using what Moore called
‘circuit and device cleverness’: innovative
chip designs, new materials, advanced
packaging and 3D integration. ASML’s
lithography products play a crucial role in
the affordable mass production of these
advanced designs that are enabling the
continuation of Moore’s Law and future
technological innovations.
Rayleigh criterion
Using the Rayleigh criterion to
drive innovation
As the semiconductor industry continues to
advance Moore’s Law, the ability to print ever-
Lambda (λ) is the wavelength
of the light source. The smaller
the wavelength, the smaller the
structures that can be printed.
smaller features is still critical. The resolution
of our lithography systems is fundamental for
shrinking the size of transistors on microchips
and enabling this progress.
The Rayleigh criterion formula, shown on
CD is the critical dimension,
or resolution. It represents the
smallest structures the lithography
system can print.
the right, illustrates the technical foundation
for resolution in lithography. For over 40
years, we have improved resolution (critical
dimension) by two orders of magnitude,
through advances in wavelength, numerical
aperture (NA) and k1 (a factor relating to
optical and process optimizations).
NA is the numerical
aperture, which describes
how well a system’s
optics gather and focus
light. Larger NA lenses
or mirrors can print
smaller structures.
k1 is a factor relating
to optical and process
optimizations.
ASML Annual Report 2025 | 15 |
Financial performance | Risk and security |
Our holistic approach to lithography (continued)
Our integrated lithography solutions enable chipmakers to achieve greater control,
precision, efficiency and value throughout the manufacturing process.
The chipmaking process | ||
Microchip manufacturing is a complex, multi-step process that takes place in highly specialized semiconductor fabrication plants, known as ‘fabs’. Transforming a silicon wafer into finished chips can take up to six months and involves hundreds of tightly controlled steps and quality checks. Lithography is one of the most critical steps in the mass production of microchips. It is the only step where each chip on a wafer is individually processed, which means we can maximize yield and performance by optimizing patterning chip-by-chip. The diagram on the right illustrates the key steps of the manufacturing journey. As chip designs become more complex and feature sizes continue to shrink, the challenges of manufacturing increase. That’s why a holistic approach to lithography is essential. It enables greater precision, efficiency and value throughout the process. | ||
Steps in the chip manufacturing process | ||
Together, the following steps create a single layer of a microchip. To build a complete device, these steps are repeated for each additional layer. 1.Deposition: Different materials – conductors, insulating films and semiconductors – are deposited onto a silicon wafer. 2.Photoresist coating: The wafer is coated with a light-sensitive layer called photoresist. 3.Lithography: The microchip pattern is printed by using light to project it onto the wafer. 4.Baking and developing: The wafer is baked and developed to fix the pattern in the photoresist. 5.Etching: Reactive gases are used to etch away excess material, leaving the circuit pattern behind. 6. Ion implantation: The wafer may be bombarded with ions to tune the semiconductor’s properties. 7. Photoresist removal: The remaining photoresist is removed. | ||
ASML Annual Report 2025 | 16 |
Financial performance | Risk and security |
Our holistic approach to lithography (continued)
The role of our lithography systems
Microchips are made by layering complex,
patterns that build transistors, circuitry and
interconnects – a process to which ASML’s
lithography systems are central. A lithography1
system essentially projects light through or
from a blueprint of a pattern (known as a
‘mask’ or ‘reticle’), shrinking and focusing it
onto a photosensitive silicon wafer. Once a
layer of a chip has been printed, the system
moves the wafer slightly and prints another.
Lithography drives shrink by determining the
smallest feature sizes that can be printed on a
chip – and therefore the number of transistors
and the performance. To do so, it has to
use shorter wavelengths of light and larger
numerical apertures, as well as other process
and hardware optimization and advanced
techniques such as multiple patterning.
As patterns gets smaller and become
increasingly complex, chipmakers face
unprecedented engineering, material,
constructional and manufacturing challenges.
Many sources of variation and error can
hinder the lithography process and must be
controlled to ensure chips are produced with
the required precision, in high volumes, as
fast as possible and at the lowest cost.
Navigating challenges in
advanced lithography
To help our customers understand and
correct potential variations or errors, we
provide support and solutions at every
stage of the chipmaking process – from
early design and development to high-
volume production.
We take a holistic, integrated approach
to lithography that enables customers to
achieve their highest yields and best chip
performance at the lowest cost per transistor.
Our approach helps minimize any deviation
between the intended and printed features
of a microchip layout (so-called ‘edge
placement error’ – see box) by optimizing
the lithography system’s performance and
stability. It enables chipmakers to increase
the number of good wafers per day to
minimize costs and keep the scaling of
microchips affordable.
What is edge placement error (EPE)? | ||
EPE measures the difference between the intended and the printed features of a microchip. It combines overlay errors (misalignment between layers) and critical dimension variations (feature- width deviations). Take, for example, a line with right and left edges. On a microchip, this line and its edges must be precise and placed in exact locations – any deviation, no matter how slight, can compromise functionality and cause the entire chip to fail. | ||
1.In semiconductor manufacturing, ‘lithography’ typically refers to photolithography – the process of using light to transfer a pattern onto a substrate.
ASML Annual Report 2025 | 17 |
Financial performance | Risk and security |
Our holistic approach to lithography (continued)
Maximizing the process window | ||
Our integrated lithography solutions work to maximize the process window – the collection of acceptable ranges of process parameters that allow a microchip to be manufactured and meet desired specifications. | ||
By incorporating computational lithography, metrology and inspection, ASML’s lithography portfolio enables customers to maximize this window – keeping lithography systems stable in a high-volume manufacturing setting and leading to a higher yield with more good wafers per day. Lithography is the only step in the microchip manufacturing process in which in-line adjustments can be made chip by chip to optimize performance. Our lithography systems are a hybrid of high-tech hardware and advanced software. Without the system and process control software we develop, it would be impossible for our lithography systems to manufacture the ever-smaller features in advanced microchips. Our software products enable automated control loops to maintain optimal operation of lithography processes and therefore maximize yield. | ||
Computational lithography
uses models and algorithms
to predict and optimize
the process window of
our lithography systems
by calculating the best
settings for specific
applications. This occurs
during the research and
development phase, prior to
high-volume manufacturing.
Our suite of optical and e-beam
wafer metrology and inspection
products measure features on
the wafers to assess pattern
quality which helps control the
process window and maximize
lithography performance.
Our comprehensive product portfolio is aligned to our customers’ roadmaps, delivering holistic
lithography solutions in support of all applications, from advanced to mainstream nodes.
Lithography systems
Extreme ultraviolet (EUV)
lithography systems
Our EUV lithography systems make it
possible to print the smallest features on
microchips at the highest density, and are
used for the most intricate, critical layers on
the most advanced microchips. Compared to
complex multiple-patterning strategies using
deep ultraviolet (DUV) immersion systems,
EUV systems help simplify our customers’
manufacturing processes. Therefore, we
collaborate closely with customers to lower
manufacturing costs by shifting from complex
multi-patterning to simpler single patterning
using EUV lithography, a method that requires
only one exposure per layer. This approach
reduces the number of masks and process
steps, while also improving yield and scalability
for advanced Logic and Memory nodes.
ASML is currently the world’s only
manufacturer of EUV lithography systems.
Our EUV product roadmap is intended to
drive affordable scaling to 2030 and beyond.
TWINSCAN EXE platform (EUV 0.55 NA)
Our TWINSCAN EXE platform, offering a high
numerical aperture (NA) EUV, is an evolution
in EUV technology. It enables customers to
extend their shrink roadmap and minimize
double- or triple-patterning. This leads to
reduced process complexity, lower risk of
defects and shorter cycle times. In addition,
it saves valuable fab space by requiring
fewer systems overall.
The EXE platform has been designed
to maximize commonality with the NXE
platform, to drive cost reduction, speed
up the development of new solutions and
optimize future reuse. We aim to extend this
commonality in our future systems, with the
ultimate goal of having a common platform
early in the next decade.
We expect our TWINSCAN EXE platform to
start supporting high-volume manufacturing
in 2027.
Latest: Success with our TWINSCAN EXE:5200B In early April 2025, we shipped our first TWINSCAN EXE:5200B system – the successor to the TWINSCAN EXE:5000 – ready to be used in high- volume manufacturing. At 175 wafers per hour, it offers 60% higher productivity compared to the TWINSCAN EXE:5000 – thanks to an improved EUV light source that delivers increased power at the wafer level, translating to a higher system throughput. The TWINSCAN EXE:5200B also features improved projection optics, developed in cooperation with our strategic partner Carl Zeiss SMT, that maximize imaging and overlay (layer-to-layer alignment) performance. | |
ASML Annual Report 2025 | 19 |
Financial performance | Risk and security |
Our products and services (continued)
Lithography systems (continued)
TWINSCAN NXE platform (EUV 0.33 NA)
Our TWINSCAN NXE platform was first
introduced in 2013 and is now widely
adopted in high-volume manufacturing
by our major customers.
Read more about our EUV lithography systems
at asml.com
Latest: TWINSCAN NXE:3800E reaches full productivity specification In 2025, we shipped TWINSCAN NXE:3800E systems to our customers at full specification, which includes 220 wafers-per-hour throughput – a 37% improvement compared to the TWINSCAN NXE:3600D – a higher-power light source, new wafer handler, faster wafer stages and high-power imaging control functionality. We completed field upgrades to bring systems that were already in customer fabs to the same specifications. The rollout across the installed base remains on track. | |
Deep ultraviolet (DUV)
lithography systems
DUV lithography systems are the workhorses
of the industry, producing the majority of
layers in microchips. Supporting numerous
market segments, our immersion and dry
lithography systems use a range of light
sources to offer all wavelengths currently used
in the semiconductor industry – argon fluoride
(ArF) lasers for 193 nm wavelength, krypton
fluoride (KrF) lasers for 248 nm and mercury
vapor discharge lamps (i-line) for 365 nm.
Our systems lead the industry in productivity,
imaging and overlay performance to help
manufacture a broad range of semiconductor
nodes and technologies and support the
industry’s cost- and energy-efficient scaling.
Immersion systems (TWINSCAN
NXTi platform)
Argon fluoride (ArF) immersion lithography
maintains a thin layer of water between the
lens and the wafer, increasing NA to improve
resolution and to support further shrink. Our
immersion systems are suitable for both
single-exposure and multiple-patterning
lithography, and can be used in seamless
combination with EUV systems to print
different layers on the same chip.
Dry systems (TWINSCAN NXT
and TWINSCAN XT platform)
Not every layer on a chip needs to be
produced using the latest immersion or
EUV lithography systems. While some
more complicated layers require advanced
lithography systems, others can be printed
using more mature technology, such as dry
lithography systems that continue to evolve
through innovation.
With our dry systems product portfolio, we
aim to provide our customers with a range
of cost-effective solutions that meet the high
demand for less complex chips.
Read more about our DUV lithography systems
at asml.com
Latest: TWINSCAN XT:260 The TWINSCAN XT:260, the latest addition to our i-line portfolio, combines high throughput with the imaging accuracy of a scanner. It offers up to four times higher productivity compared to existing solutions, making it a cost-effective technology to support our customers in 3D integration applications, including advanced packaging, as well as other emerging technologies, such as image sensors, displays and photonics. Contributing to that high throughput is a new high-transmission lens with 2x, rather than 4x, reduction that enables the system to print on a larger area of a wafer in a single exposure. The XT:260 is unique in that it combines large-area patterning with a scanner exposure approach that enables better imaging and overlay correction than a stepper. The system integrates easily with other ASML systems in our customers’ fabs, for fast, seamless adoption into production. | |
Metrology and inspection systems
Refurbished systems
ASML systems have a very long operational
lifetime that often exceeds their role for the
initial customer – approximately 95% of the
systems we have sold in the last 30 years
are still in use. Many customers are able to
generate value by selling systems they
no longer require.
To support this sustainable product use
and help to ensure used systems still uphold
and deliver the quality ASML stands for,
we are actively involved in refurbishing and
upgrading our older lithography systems
to extend their lives – and offer associated
services and support.
The smaller a chip’s features, the less
room there is for error when it comes to
patterning. At the same time, the increasingly
3D architectures of today’s chips make
accurate patterning all the more challenging.
That’s why our metrology and inspection
systems – which minimize EPE, optimize
overlay and detect defects – are critical.
Our metrology and inspection systems
enable chipmakers to accurately measure
the printed patterns on wafers to make
sure they align with the intended designs.
Our comprehensive portfolio facilitates
patterning optimization at every stage of
the manufacturing process, from research
and development to mass production.
These systems are a key element of our
holistic approach to lithography. They deliver
data with the required speed and accuracy
for high-volume manufacturing, enabling
our process control software solutions to
implement automated feedback control
loops. This optimizes the lithography system
settings for each exposure to minimize
EPE, broadening the process window to
maximize yield and best performance.
Optical metrology (YieldStar)
Our YieldStar optical metrology systems
use light to monitor patterning performance
at the speed of high-volume manufacturing.
They measure overlay and provide real-time
feedback to lithography systems so they
can make wafer-by-wafer adjustments.
ASML Annual Report 2025 | 20 |
Financial performance | Risk and security |
Our products and services (continued)
Metrology and inspection systems (continued)
We offer two categories of systems for use
before and after etching. Pre-etch metrology
measures the overlay and focus of the
lithography system based on the pattern
printed on the photoresist. Post-etch
metrology measures the overlay and CD
of the final patterns formed on the wafer.
Latest: YieldStar 550 and YieldStar 1390 The YieldStar 500 has achieved broad acceptance among our leading customers, providing advanced pre-etch overlay control with improved cost of technology and performance in matching and accuracy. Building on this success, the YieldStar 550 is designed to further improve matching and accuracy while maintaining productivity – even when utilizing multi-wavelength recipes – to ensure process robustness for overlay. Early-access packages have been delivered to customers for initial qualification on next-generation nodes, with phase 1 of the product scheduled for release in 2026. The first YieldStar 1390 was shipped in 2025, featuring a higher-power light source and advanced software to accelerate recipe setup. With increased throughput from faster optical metrology, the YieldStar 1390 is positioned to drive broader customer adoption for after-etch overlay control by delivering superior performance and cost effectiveness. | |
E-beam metrology and inspection (HMI)
Our HMI e-beam systems use an electron
beam to locate and analyze individual chip
defects – errors that would affect the chip’s
performance – among millions of printed
patterns. It is a slower method of detection,
but offers very high resolution.
As chip features get smaller, tiny defects
are more and more likely to cause problems.
By using high-resolution measurements from
our e-beam inspection systems to adjust a
lithography system’s settings, chipmakers can
minimize defects and maximize performance.
To mitigate the traditionally slower speed of
electron-beam inspection systems, we have
developed a multiple e-beam (multibeam)
inspection system roadmap. Instead of a
single e-beam, multibeam makes use of
multiple electron beams within a single
system. This harnesses the high resolution,
but at much higher speeds.
Read more about our metrology and inspection
systems at asml.com
Latest: HMI eScan 1100 The HMI eScan1100 is our first multibeam inspection system featuring 25 beams for large wafer coverage and high throughput. It offers industry-leading application coverage for electrical and patterning defects, delivering 10 times higher throughput than single-beam systems for advanced Logic and DRAM. This capability enables full wafer fingerprint capture (scanning multiple microchips across the wafer to create a detailed defect map) within acceptable inspection times and accelerates yield learning by moving insights forward up to one and a half months compared to end-of-line electrical probe tests. Within the context of defect type and layer, the eScan1100 speeds up root-cause analysis beyond probe-based methods. Industry-wide adoption of voltage contrast for product monitoring is driving strong demand for multibeam inspection systems. | |
System and process control software
Taking advantage of the flexibility of
our lithography systems, our system
and process control software
products enable automated control
loops to maintain optimal operation
of lithography processes and
maximize yield.
Using powerful algorithms, they analyze
metrology and inspection data and calculate
necessary corrections for each individual
exposure – providing a feedback loop to
the lithography system to minimize EPE.
Our virtual computing platform
(VCP) brings together all the data from
lithography and metrology systems,
enabling the latest ASML applications
and enhancing transparency and
collaboration. VCP manages peak
loads and handles ever-increasing data
speeds and volume with more computing
power and storage, in a modern and
resilient software architecture.
 |
ASML Annual Report 2025 | 21 |
Financial performance | Risk and security |
Our products and services (continued)
Computational lithography
During lithography, diffraction of the light
and various physical and chemical effects
distort the image the machine is trying to
print. Think of this like trying to draw a fine
line with a broad watercolor paint brush –
it smudges in many places.
Using computational lithography, we can
predict and enhance the process window
of our lithography systems by calculating the
optimal settings for each specific application.
During the R&D phase, our customers rely
on computational lithography to optimize
the imaging conditions of our systems
and develop the recipes to optimize reticle
patterns to achieve the best pattern fidelity.
This ensures robust, manufacturable designs
that deliver high yields.
Insights from computational lithography
solutions are also increasingly used to
guide metrology and inspection, increasing
throughput and enabling more precise
process monitoring and control in high-
volume manufacturing.
These solutions are based on accurate
computer simulations of the lithography
system and process, representing a wide
variety of physical and chemical effects –
enabling us to predict how a designed
pattern will appear when printed on a wafer.
Managing our installed base
We are increasingly using machine-learning
techniques to further enhance the accuracy
of models and reduce the computational time
and cost. Our roadmap aims to apply more
powerful algorithms with higher-order
corrections, to enable our customers to
continue improving EPE performance.
Read more about our computational lithography
solutions at asml.com
Latest: Enhanced computational lithography solutions for High NA EUV In 2025, we enhanced our solutions for High NA EUV with source, mask and wavefront co-optimization; model capability and accuracy improvements; optical proximity correction (OPC); and curvilinear OPC performance enhancements. Machine learning and AI continue to enable these advanced techniques by delivering accuracy and speed. | ||
 | ||
Our installed base continues
to grow, comprising not only
new systems but also refurbished
ones with new owners in new
markets and applications.
To provide the best value proposition,
we offer an extensive portfolio to manage
our installed base, including a wide range
of service and upgrade options designed
to improve throughput, patterning
performance and overlay. Our field upgrade
packages enable customers to optimize
their cost of ownership over a system’s
lifetime by upgrading older systems to
improved models.
Extending the lifetime of our PAS systems
Our PAS 5500 lithography system,
introduced in the early 1990s,
played a pivotal role in ASML’s
rise as a global leader
in lithography.
Despite their age, nearly all of these
systems remain in active use, particularly
in the mainstream ‘More than Moore’
semiconductor market. While Moore’s Law
focuses on continual shrink of transistors,
‘More than Moore’ emphasizes adding
diverse functionalities to the chips without
necessarily reducing size. The ‘More than
Moore’ market therefore prioritizes mature,
cost-effective technologies for applications
like automotive, consumer electronics and
data centers. In fact, around two-thirds of
components in devices such as the latest
smartphones are produced using
these systems.
To support sustainability and extend the
lifetime of the PAS 5500 until at least 2035,
we launched the PAS Life Time Extension
(PAS-LTE) program around 10 years ago.
This initiative addresses challenges such
as obsolete electronics, limited end-of-life
support from suppliers and loss of domain
knowledge as experienced engineers retire.
The program involves redesigning critical
electronic components, leveraging modern
technologies (such as 3D printing for
prototyping) and enhancing commonality to
reduce costs and streamline supply chains.
Mechanical and optical parts are sustained
through ongoing relationships with suppliers
and careful end-of-life management.
Our approach emphasizes reuse and upgrade
of existing systems, rather than replacement,
to align with sustainability goals and customer
demands for long-term support. Through
continuous innovation, documentation
recovery, reverse engineering and extensive
testing, we aim to ensure that new and old
components function seamlessly together,
maintaining system performance while
minimizing waste. These strategies help
us serve the mainstream semiconductor
market and support sustainability of this
market by extending system lifetime and
managing resources efficiently.
The macro headlines in 2025 were dominated by tariff dynamics, resulting
in a downward revision of the 2025 global gross domestic product (GDP)
forecast in April. As the year progressed, the outlook was adjusted upward,
returning to the level prior to the tariff announcements. Global GDP
growth was 3.2%1 for 2025, slightly below 2024 GDP growth. As in 2024,
geopolitical volatility remained high, and AI dominated the news and
spending in the semiconductor ecosystem.
The semiconductor market again saw strong
double-digit growth with the same drivers
as last year: advanced Logic and DRAM for
AI continued to lead. The NAND market did
have a short correction but later in the year
strongly recovered, again driven by AI
demand by hyperscalers.
The lithography market showed double-digit
growth where China remained stronger than
initially expected, not only for lithography but
for the full wafer fab equipment market.
We anticipate continued growth in the
semiconductor market driven by strong
demand for AI logic and memory products,
along with high pricing resulting from supply-
demand imbalances. This is expected to
drive demand for growth in the equipment
market. Factors that may impact our business
– as explained in more detail over the next
few pages – include:
1.Macroeconomic and geopolitical trends | ||
2.Megatrends | ||
3.Semiconductor industry market developments | ||
4.The forces impacting our strategy |
1 Source: IMF World Economic Outlook, October 2025
1. Macroeconomic and geopolitical trends |
Economic outlook | |
What’s happening
At the start of the year global GDP
growth for 2025 was expected to be 3.3%,
slightly above the 2024 growth of 3.2%.
Driven by the dynamic geopolitical
environment (including tariff negotiations),
the macroeconomic outlook fluctuated
throughout the year. The latest forecast
suggests growth of 3.2%1, while 2024
growth has been revised up to 3.3%.
A slowdown in GDP growth is typically
not a tailwind for a strong semiconductor
cycle. The very high growth of demand
for AI chips, however, drove the overall
semiconductor market in 2025 to double-
digit growth. Toward the end of the year,
both DRAM and NAND demand increasingly
outstripped supply, leading to a strong
pricing environment and a good basis for
further capacity expansion in 2026.
Other markets that drive leading-edge
semiconductors such as smartphones and
PCs saw moderate growth as expected.
The introduction of edge AI on these
devices will drive additional memory
content. The industrial and automotive
markets started to recover but at a slow
pace. The current global GDP outlook
for 2026 points to a continued gradual
recovery of these end markets.
Global geopolitics – technological and AI sovereignty |
What it means for ASML
Our EUV business saw growth in both EUV
0.55 NA and EUV 0.33 NA. Growth for EUV
0.33 NA was driven by the strong demand in
advanced Logic and DRAM in support of the
build out of the AI infrastructure. For EUV
0.55 NA, we recognized revenue for four
systems that were shipped to customers’
R&D facilities.
For non-EUV, sales were at a similar level as
in 2024. Sales were primarily driven by our
China mainstream business.
We are working closely with our customers
and suppliers to optimize our output
capability and manage the risks.
Our macroeconomic and geopolitical risks
are part of our risk management process.
What’s happening
Semiconductors are crucial to the
economic and strategic development of
countries and regions – and the importance
of the industry is only likely to grow. Many
governments are pushing for ‘technological
sovereignty’ to ensure security of supply,
resilience and technological leadership in
semiconductor technologies and applications
– fueling capital expenditure.
Countries and regions are also prioritizing
AI sovereignty – the ability to independently
develop, deploy and govern AI technologies.
This drives the need to develop and train
local AI models which require additional data
center hardware with leading-edge silicon.
What it means for ASML
As governments increasingly see
semiconductor manufacturing as strategically
significant, chips acts are incentivizing our
customers to build manufacturing facilities
in the US, Europe and Asia. We share our
views with governments, and we work
closely with our customers to build the
required ecosystem in these new regions –
while retaining our focus on supporting
established regions. External factors such
as the timing of subsidies and the risk of
restrictions make forecasting market
demand less predictable.
b r | 1. Macroeconomic and geopolitical trends (continued) |
Global geopolitics – export controls |
What’s happening
Our business is subject to global export
control laws and regulations. Key
developments in 2025 were the following:
•NL Export Controls: Effective January 15,
2025, the Netherlands expanded its
export control regulations to include an
additional group of semiconductor
manufacturing equipment, primarily
certain metrology and inspection
systems. These items now require an
export license when shipped abroad.
•US Export Controls: On October 1, 2025,
the US Department of Commerce
introduced the Affiliates Rule, expanding
Entity List restrictions to include entities
that are at least 50% owned by listed
parties. While this rule would have
affected a limited number of our business
partners, its implementation has been
suspended for one year, until November
10, 2026, as part of a trade agreement
with China. As a result, the rule currently
has no impact on our business operations.
•China’s Rare Earth Controls: In 2025,
China introduced new rules: it restricted
exports of certain rare earth elements,
limited technology sharing for processing
them and extended these rules to
products made abroad if they include
any rare earth elements or technology.
We began preparing for these restrictions
in early 2024, with a focus on magnets used
in our systems. A dedicated team continues
to monitor regulatory developments and
supplier risks, supported by mitigation plans
already in place. To date, no material impact
on customers has been observed. As part
of a trade agreement with the US, China
has suspended its export restrictions on rare
earth materials for one year, until November
10, 2026. Existing risk mitigation measures
for rare earth materials will remain in place.
•EU Export Controls: In November 2025,
the European Union incorporated certain
Dutch national controls into the EU Control
List, extending to all EU member states
a license requirement for specific
semiconductor manufacturing equipment.
This includes advanced systems such as
our DUV immersion lithography systems
when exported outside the EU. For ASML
this did not mean a change as these
products already required an export
license from the Netherlands.
What it means for ASML
Changes in export controls may have a
material impact on our business for example
on the sales volume, mix and timing.
We are committed to complying with
all applicable laws and regulations,
including export control legislation in
the countries where we operate, while
continuing to develop our technology
and serve customers.
We aim to work with global customers to
deliver lithography and metrology systems
not impacted by export control restrictions
or sanctions. We share relevant dynamics
with governments to foster understanding
of potential impacts of current and
future measures.
We require every ASML employee to follow
policies designed to ensure compliance and
prevent unauthorized transactions. We have
implemented controls for compliance with
export control and sanctions requirements
and remain committed to enhancing and
making our compliance framework more
intuitive and easier to navigate.
2. Megatrends | |
Key megatrends impacting the semiconductor marketplace |
Connected world | ||
•Artificial intelligence •Hyperconnectivity •Cloud infrastructure •Internet of Things | ||
Climate change and resource scarcity | ||
•Energy transition •Electrification and smart mobility •Agricultural innovation •Smarter use of limited resources | ||
Social and economic shifts | ||
•Working and learning remotely •Healthcare and medical tech •Technological and AI sovereignty •Automation | ||
The world is changing fast, and
semiconductors are a key enabler to
help solve some of humanity's toughest
challenges. In 2025, we continued to see
very strong growth in AI, enabled by leading-
edge semiconductor solutions, both in
advanced Logic and AI-related DRAM.
AI requires leading-edge, high-performance
processor chips and a significant increase
in DRAM chips compared to traditional
compute architectures. It also stimulates
the mainstream market, as AI requires large
amounts of data collected via sensors
which can be used to further drive robotics
and workflow automation.
The continuing convergence of wireless
communication, telecoms, media and cloud
technology via connected devices is driving
demand for advanced semiconductors
across the globe. Growing populations,
urbanization, the energy transition and
electrification to support smart mobility
are increasing demand for advanced
electronic devices.
2. Megatrends (continued) |
Connected world | |
With the Internet of Things (IoT),
smart, connected networks seamlessly
communicate over powerful 5G
networks – unleashing the power of
unprecedented data volumes better
and faster than ever. In combination
with AI, this provides people with
more innovative functionalities and
applications, improves human-to-
machine interactions and enhances
data management and analytics.
 |
Artificial intelligence
AI and edge computing are converging
to create powerful, localized intelligence
– enabling faster and more efficient data
processing. Edge computing brings
computation and storage closer to data
sources, while AI algorithms analyze that
data on-site, reducing latency and reliance
on cloud-based processing. This integration
is revolutionizing various industries by
enabling real-time insights leading to
improved decision-making, increasing
productivity and enhanced automation.
 |
Hyperconnectivity
5G hyperconnectivity connects everyone
and everything globally, including machines,
objects and devices. The demand for
bandwidth is rising due to person-to-person,
person-to-machine and machine-to-machine
communication, driven by diverse and
complex new applications and devices.
 |
Cloud infrastructure
To enable cloud computing – the on-
demand availability of computer system
resources, especially data storage and
computing power – a related infrastructure
is required. This includes hardware,
software, storage and network resources.
 |
Internet of Things (IoT)
Semiconductors are increasingly
present in everyday devices, enhancing
their capabilities by connecting them to
the internet. AI boosts the value of these
devices by enabling them to capture data
to improve their functionality – and to
benefit other connected devices, too.
Climate change and resource scarcity | |
What it means for ASML
Moore’s Law is the driving force behind
the semiconductor industry and the
transition toward ubiquitous computing.
This shift is increasingly powered by AI,
which constantly evolves and expands its
capabilities. AI applications generate vast
amounts of data, which in turn fuel the
development of new algorithms – driving
further innovation in AI applications and
creating a continuous cycle of growth
and improvement that is expected to
significantly boost the growth of the
semiconductor industry. However, for
AI to really come to life in the next few
years, we need to reduce its cost and
energy consumption.
With an urgent collective response
needed to limit global warming to
1.5°C, climate change is a crucial
matter for governments, companies
and individuals worldwide.
 |
Energy transition
The shift to renewables is helping
deliver the clean, affordable energy the
world needs to counter climate change.
Semiconductors help harness, convert,
transfer and store energy from solar and
wind as electricity, ensuring power grids
are responsive and robust. They are
essential in smart (home) devices and
play an important role in reducing overall
energy consumption.
 |
Electrification and smart mobility
The market for automotive semiconductors
is rapidly evolving due to trends such as
electrification and autonomous driving. The
automotive industry is in a period of rapid
change due to environmental and safety
requirements in combination with new
innovations that enable change. The move
from combustion engines to electric engines
is a major driver for mainstream semiconductor
products like power electronics. The trend
toward autonomous driving is fueling both
advanced semiconductor content in the
car and mainstream semiconductors via
the need for vision and other sensors.
Globally, particularly in urban areas,
people are expected to shift away from
owning expensive and environmentally
harmful vehicles. They are expected to
increasingly prefer car-sharing, ride-
sharing, ride-hailing, micro-mobility (using
small, low-speed, human- or electric-
powered transportation devices) and
micro-transit (on-demand shared private
or semi-public transport) options.
Semiconductors enable the mobile apps
that support this move to smart mobility.
2. Megatrends (continued) |
Climate change and resource scarcity (continued) | |
 |
Agricultural innovation
Remote farmland, especially in emerging
economies, faces climate change challenges.
With growing access to mobile devices,
local farmers use smartphones and smart
sensors to enhance their agricultural
practices. This leads to better crops and
more sustainable food security – enabled
by smaller, more affordable microchips.
 |
Smarter use of limited resources
The semiconductor industry can also
play an important role by reducing its
own climate impacts. The semiconductor
manufacturing process uses significant
amounts of energy and water, and driving
Moore’s Law to increase computing power
and storage capacity fuels demand for these
vital resources. To improve the industry’s
energy and water resource efficiency,
innovative architectures will be necessary.
Furthermore, through the adoption of a
circular economy that emphasizes material
recovery, recycling and sustainable design,
the industry seeks to reduce waste and
extend product lifecycles.
Social and economic shifts | |
What it means for ASML
Semiconductors play an important role in
addressing climate change across various
sectors. In the automotive industry, a shift
toward electric vehicles and autonomous
driving is expected to significantly increase
the number of semiconductor components
in cars. Additionally, the integration of
digital technologies to support the energy
transition and agricultural innovations relies
on semiconductor solutions to enable smart
grids and enhance agricultural practices.
With the rapid rise of AI, energy consumption
is becoming a critical concern, as AI
applications often require vast computing
resources and thus consume substantial
amounts of energy. ASML’s advanced
lithography systems offer a pathway to
greater energy efficiency for semiconductors.
Furthermore, by advancing our EUV
productivity roadmap, we help customers
simplify complex multiple-patterning layers
into a single exposure – reducing resource
consumption in the semiconductor
manufacturing process.
We aim to transition from a linear to more
circular business model to minimize the
social and environmental impacts of our
operations worldwide.
Digital technologies are driving
transformative change. They create
new opportunities for a more prosperous
future, but at the same time pose
new challenges.
|
Working and learning remotely
In recent years remote and hybrid working
and learning have become increasingly
prevalent – and the advantages extend
beyond immediate pandemic-related needs.
They promote sustainability by reducing
commuting and lowering carbon footprints,
and contribute to economic resilience
– providing the capacity for continuity
in education and business operations
during unforeseen disruptions.
 |
Healthcare and medical technology
Predictive analysis of health data from
multiple sources, combined with machine
learning and AI, is being harnessed to
improve healthcare services and patient
outcomes. Semiconductor technology has
allowed the creation of innovative products
that can effectively detect, diagnose and
treat various medical conditions.
 |
Automation
A new generation of lightweight robots
connected to a wide network and fitted with
smart sensors enable humans and machines
to safely and efficiently work side by side,
supported by AI. In addition, smart industry
devices use real-time data analytics and
machine-to-machine sensors to optimize
processes, predict bottlenecks, and
prevent errors and injuries.
What it means for ASML
The ongoing digitalization of various
sectors such as healthcare and
manufacturing keeps on driving the
need for semiconductors. The integration
of digital technologies in these industries
requires robust semiconductor solutions
to enable efficient data processing,
real-time analytics and connectivity.
3. Semiconductor industry market developments | |
Semiconductor technology plays a crucial
role in shaping the interconnected and
intelligent network future – and we believe
end markets will continue to grow. The
industry’s historical market compound
annual growth rate (CAGR) from 2014 to
2024 was 7%. In 2024, almost one trillion
chips were shipped around the world,
feeding a $631 billion industry (data source:
WSTS). In 2025, the semiconductor market
continued to be driven by strong demand
for AI servers, which exceeded supply,
resulting in a strong pricing environment for
both Logic and DRAM. PC and smartphone
market demand went up by single digits,
while the industrial and automotive chip
markets started to slowly recover.
Generative AI
Generative AI remained a key demand
driver in 2025, resulting in strong demand
for graphics processing unit (GPU) chips
(Logic) and high-bandwidth memory (HBM)
among our customers – and both products
are growing fast. This is expected to
continue. The cost and energy consumption
of transferring data between current
Memory and Logic architectures is high,
so we expect AI applications to integrate
DRAM and Logic in new architectures.
Wafer bonding
Wafer bonding is a rising trend in chip
manufacturing that enables the fusion of
separate wafers – such as Logic and Memory
(see box) – into a single, high-performance
stack. This technique supports 3D integration
and heterogeneous materials, allowing for
more compact and efficient microchips.
It improves bandwidth, reduces latency
and enhances energy efficiency, making it
ideal for AI, mobile and high-performance
computing applications. And, as traditional
approaches to scaling reach physical limits,
wafer bonding offers a path forward by
combining diverse technologies at the
wafer level. Its growing adoption reflects
the industry’s push for advanced packaging
and integrated solutions in next-generation
electronics. Our lithography systems in
combination with metrology and inspection
solutions, are foundational to enabling the
precision required for bonded wafers.
Market outlook
At our 2024 Investor Day, we communicated
an expected semiconductor market growth
of a 9% CAGR between 2025-2030, projected
to surpass $1 trillion by 2030. We currently
observe an even stronger than initially projected
ramp up of AI, which is driving demand both
in advanced Logic and DRAM. This resulted in
semiconductor market growth of more than
20% in 2025 and created a supply-demand
imbalance as the manufacturing capacity
additions following the severe Memory market
correction in 2023 have been moderate. At
the end of 2025, prices of Memory increased
to levels not seen in at least a decade. We
believe this combination of high demand and
high prices positions the semiconductor market
for double digit revenue growth in 2026.
For the 2025–2030 timeframe, we continue to
expect a global annual wafer capacity growth
of 780,000 wafer starts per month per year
on average. It is also expected that wafer
capacity additions through 2030 will be more
weighted toward advanced Logic (nodes ≤7
nm) and DRAM, which is required to support
AI-related applications, and less toward
NAND and mainstream wafers. We believe
this change in wafer mix can be favorable for
ASML, given that advanced Logic and
DRAM are more lithography-intensive.
Logic and Memory markets explained |
The semiconductor market can be broadly
divided into two segments based on the
types of chips they produce: the Logic
market and the Memory market. The largest
semiconductor manufacturers serve both,
producing chips in dedicated Logic
or Memory fabs.
Logic chips are processors, such as central
processing units (CPUs) and GPUs – the
‘brains’ of electronic devices, processing
input and output results. They are produced
by two groups of manufacturers: integrated
device manufacturers (IDMs), which design
and manufacture Logic chips; and contract
manufacturers, known as foundries.
Foundry manufacturers produce chips for
‘fab-less’ companies that focus on design
and distribution but do not manufacture
microchips themselves.
Memory chips can store large amounts
of data in a very small area. And there
are two main types: volatile chips such
as DRAM, which efficiently provide data
to the processor and only save data when
the device is turned on; and non-volatile
chips such as NAND Flash, which save
data even after the device is turned off.
Microchips vary in complexity depending
on the task they need to fulfill. For example,
the most advanced chips power leading-
edge technology such as AI, big data and
automotive technology, while simpler, low-
cost chips such as sensors integrate sensing
capabilities into everyday technology –
creating the loT. The simplest types of chips
can be made with more mature lithography
technology, whereas manufacturers of the
most complex chips need to use the latest
EUV systems.
4. The forces impacting our strategy |
Maintaining customer trust requires focus on innovation, cost, quality, response time and sustainability. |
We need to manage complexity in systems and processes and strengthen our sites, supply chain and people. |
The virtuous cycle of Moore’s Law continues – potentially accelerated further by AI. |
Geopolitical volatility requires a more robust approach to support our customers and people. |
The industry pushes against the limits of scaling and uses a widening array of levers to increase density. |
Success and systemic relevance have increased our responsibility to society. |
ASML Annual Report 2025 | 28 |
Financial performance | Risk and security |
Our business strategy
Our six priorities will drive long-term growth. Over the following pages, we expand on our progress in 2025.
1 | ||
Deepen customer trust | ||
Consistently deliver innovative, high-quality and reliable holistic lithography solutions that foster long-term customer partnerships and set industry standards for excellence |
Our commitment to deepen customer trust
is woven into every facet of our operations,
driving us to continually:
•Increase value creation focused on
innovation, cost, quality, response time
and sustainability.
•Strengthen partnerships with customers
based on even deeper understanding
and anticipation of their needs and
product roadmaps.
•Expand the bandwidth, responsibility
and accountability of our customer
teams, empowering them to champion
the voice of the customer and meet
their requirements.
Increase value creation for customers
In today’s rapidly evolving technological
landscape, delivering exceptional value to
customers requires more than just meeting
expectations – it demands foresight and
continuous improvement in every aspect
of our interactions. Our commitment to
innovation helps us to stay ahead, developing
solutions that address both current needs
and future challenges. We allocate significant
investment in R&D to drive new technologies
faster and with greater impact, refine existing
systems and fuel creative approaches to
efficiency and performance.
Our innovation is closely linked to
our commitment to customer value.
By streamlining processes and optimizing
our supply chain, we aim to strike a balance
between high-performance solutions and
cost efficiency, providing products that
align with market demands.
Equally important, is our pursuit of quality
in every stage of our operations. Robust
quality assurance protocols are embedded
throughout the product lifecycle to help our
systems meet availability and reliability
standards our customers rely on.
Our approach to quality naturally extends
to sustainability, which directly benefits
our customers. Guided by environmental
responsibility, we continually seek to reduce
emissions, minimize waste and design
products with lower energy consumption
and higher recyclability, laying the groundwork
for lasting impact across our value chain.
Finally, we listen actively and take decisive
action to address customer concerns swiftly
and effectively. Our responsiveness and
alignment with their expectations reinforces
our commitment to their continued success.
Strengthen partnerships with customers
Our customers are why we exist. Establishing
true partnerships with them is rooted in a
genuine desire to understand their unique
challenges, business models and strategic
roadmaps. ASML’s strategic transformation
has strengthened this endeavor through
direct engagement, open communication
and continuous dialogue, which drives our
decision-making. We recognize that customers
operate in a complex, fast-paced environment
where collaboration and mutual trust are
essential for shared success. This close
alignment allows us to tailor our offerings,
proactively address pain points and co-create
solutions that deliver measurable impact.
At the same time, anticipation is a hallmark
of our customer engagement strategy.
By staying attuned to industry trends and
technological shifts, we help them navigate
uncertainty and seize new opportunities.
We try to anticipate changing requirements
as early as possible by leveraging customer
feedback, conducting market analyses
and harnessing the expertise of our cross-
functional teams. Through these efforts, we
aim to not only meet expectations but also
empower our customers to excel, positioning
ourselves as a trusted and indispensable
partner in their journey to growth and success.
Empower our customer teams
Empowering our customer teams is central
to delivering tailored and relevant solutions.
We delegate greater responsibility to our cross-
functional teams, so that those closest to the
customer have the authority and resources
necessary to make decisions swiftly and
effectively. With comprehensive training and
direct lines of communication with leadership,
teams are equipped to address challenges
as they arise and champion the voice of the
customer throughout the organization.
In parallel, extending accountability applies
not only to meeting targets but also to nurturing
a culture where each team member feels
personally invested in our customers’ success.
Powering technology forward
through customer
collaboration
Keeping our lithography
systems running 24/7
At ASML, customer trust is a guiding principle
woven into the daily work of engineers like Edison
Alameda. As a second-line customer support
engineer for EUV in Chandler, Arizona, Edison’s
job is to ensure the smooth operation of some
of the world’s most advanced semiconductor
manufacturing equipment and serve as a bridge
to the customers who depend on them.
 | Read more |
2 | ||
Extend our technology and holistic product leadership | ||
Integrate hardware, software and emerging solutions to create industry-defining products for our stakeholders |
As a key manufacturer of lithography
equipment, ASML plays a vital role in
the semiconductor value chain. We don’t
innovate in isolation, but as architects and
integrators collaborating closely with our
customers, supply chain and research
and technology partners in a strong
innovation ecosystem.
To extend our technology and holistic
product leadership, we continually aim to:
•Innovate across our entire portfolio to
continue to provide critical, differentiated
and cost-effective solutions to our
customers.
•Prioritize cost and energy consumption
reduction by streamlining process flows,
ensuring the highest transistor density at all
process steps and advancing technologies
that boost productivity, lower technology
expenses and cut emissions.
Innovate across our portfolio
With R&D of €4.7 billion in 2025, ASML’s
portfolio-wide innovations tackle the most
complex challenges in semiconductor
manufacturing. This reflects our strategic
vision to remain ahead of market demands
and customer expectations. We deliver new
and refined technologies that are not only
critical for the industry but also uniquely
tailored to the evolving needs of
our customers.
Research and development (in € billions) |
At the heart of our innovation is the drive to
provide solutions that are both differentiated
and cost-effective. Our holistic lithography
portfolio spans DUV and EUV lithography
systems, metrology and inspection systems,
computational lithography and system and
process control software, all of which address
a wide range of customer requirements. By
continuously introducing advancements in
these domains and innovating for emerging
applications like advanced packaging and
3D integration, we aim to ensure our offerings
remain relevant for customers and aligned
with market needs.
In addition, AI is becoming increasingly vital
for ASML, as evidenced by our €1.3 billion
investment in Mistral AI. We believe this
partnership enables us to explore the use
of AI models across our product portfolio
as well as in our research, development
and operations, to benefit our customers
with faster time-to-market and higher-
performance holistic lithography systems.
Our technology feasibility studies and
product development efforts are closely
aligned with customer device roadmaps,
helping us to anticipate and meet future
industry challenges before they arise.
Crucial to our innovation is our close
collaboration with customers, supply
chain partners and research and technology
institutions within a vibrant innovation
ecosystem. By engaging directly with
these stakeholders, we can develop solutions
that are not only technologically advanced
but also operationally viable and scalable.
Collaborative projects, often supported and
subsidized by the European Union and its
member states, serve to amplify the impact
of ASML’s research – accelerating progress
in semiconductor manufacturing technology
while adhering to the guiding framework
of Moore’s Law.
Prioritize cost and energy
consumption reduction
While innovation is essential, we recognize
that it must be coupled with a commitment to
efficiency and sustainability. Our strategy
explicitly prioritizes reductions in cost and
energy consumption across all product and
process developments. This begins with
streamlining process flows throughout the
equipment lifecycle, with the goal that every
step, from design to manufacturing to
deployment, contributes to cost efficiency
and environmental stewardship.
Next to this, we dedicate significant
resources to optimizing platform
commonality, reducing system costs
and extending the service life of critical
equipment. By doing so, we enable our
customers to attain greater performance
and value from each new technology
generation and help them comply with
increasingly stringent sustainability goals
and regulatory standards.
ASML’s efforts to lower technology expenses
and cut emissions are deeply linked to our
mission to foster a more sustainable value
chain. Initiatives to enhance recyclability,
decrease energy consumption during
operation and integrate green practices
into every product iteration underscore
our leadership in responsible innovation.
In this way, we are not only responding
to the needs of today’s semiconductor
manufacturers but also paving the way for
a future where technological growth goes
hand in hand with ecological accountability.
Powering technology forward
through
cutting-edge
physics
1,000-watt EUV light source power
shows path to higher productivity
In April 2025, ASML reached a historic milestone:
demonstrating the first ever 1,000-watt light source
for EUV lithography. This breakthrough, built on
25 years of engineering advancements, showcases
our ability to turn fundamental physics into scalable
innovation that supports our customers’ roadmaps.
It is a critical step toward faster, more cost-efficient
production of tomorrow’s cutting-edge chips.
| Read more |
3 | ||
Strengthen ecosystem relationships | ||
Collaborate with suppliers, academic partners and industry leaders to foster innovation, resilience and shared success across the value chain |
Together with our customers, suppliers,
research and technology partners and
peers, we:
•Focus on our shared goals and responsibilities
for cost, quality and sustainability to secure
resilience and continuity through strategic
sourcing and close cooperation.
•Balance risk and reward, aiming to ensure
that ambitious targets for innovation,
operational excellence and sustainability
are achieved within a thriving, interconnected
value chain.
•Support growth, mitigate disruptions and
collectively elevate industry standards.
•Foster collaboration to make the ecosystem
stronger and more agile for the future.
We trust our supply chain to manufacture
most system parts and modules, and many
partners to play a crucial role in developing
our new technology. We aim to foster even
closer relationships with our suppliers
and broader ecosystem, based on shared
goals and responsibility for cost, quality
and sustainability.
Driving continuous innovation
ASML’s innovation ecosystem is built on
strong relationships with customers, suppliers,
co-solution partners, technology partners
and academia. By closely collaborating with
these groups and with industry organizations
such as the Confederation of Netherlands
Industry and Employers (VNO-NCW), SEMI’s
Sustainability Advisory Council and the
Semiconductor Climate Consortium (SCC),
we aim to foster accelerated innovation and
ensure access to leading-edge knowledge
and technologies. Jointly, we tackle industry-
wide challenges such as ESG sustainability,
ultimately supporting growth and resilience
across the semiconductor value chain.
Academia, industry and research institutes
We co-develop technical expertise with
a broad network of technology partners,
including universities and research
institutions in Europe, the US and Asia.
Key partners include the technical universities
in Delft, Eindhoven and Twente, the Advanced
Research Center for Nanolithography (ARCNL)
and research organization TNO in the
Netherlands, CEA-Leti in France, Fraunhofer
in Germany and imec in Belgium. In March
2025, we signed a five-year strategic
partnership agreement with imec with the aim
to strengthen collaboration on emerging and
SourceSEC EDGAR