ASML will deliver the latest extreme ultraviolet lithography machine (EUV) to TSMC, valued at $380 million.

Cooperation between ASML and TSMC

ASML will ship its latest EUV to TSMC this year. ASML CFO Roger Dassen revealed to analysts in a recent conference call that ASML's two major clients, TSMC and Intel, will acquire this EUV by the end of this year.

Technical Advantages and Application of New EUV

ASML's new EUV can print semiconductors with a linewidth of 8nm, 1.7 times smaller than the previous generation, and will be used to produce chips for artificial intelligence applications and advanced consumer electronics products. These EUVs are priced at 350 million euros each and weigh equivalent to two Airbus A320s.

ASML Market Performance

After announcing this news, ASML's stock price rose 5.2% to 918.10 euros, with a cumulative increase of about 35% this year. Jefferies analysts predict that ASML's average orders will reach approximately 5.7 billion euros in the remaining three quarters of this year, driving sales to 40 billion euros in 2025.

As a result, ASML has become the second largest listed company in Europe by market value, surpassing LVMH and only behind Novo Nordisk. The market value of ASML is approximately 377 billion euros, which is approximately 641 million euros more than LVMH. Meanwhile, LVMH's stock price has fallen due to concerns about slowing luxury goods sales.

Jefferies analysts predict that ASML will have significant orders in the coming quarters. TSMC is expected to begin mass production of the next generation 2nm chips in the second half of 2025.