TLDR
- ASML stock advanced approximately 4% to $1,870.48 following an expanded High-NA EUV collaboration with Samsung.
- Samsung intends to deploy High-NA EUV for mass DRAM manufacturing by 2028.
- Intel has successfully processed over one million wafers using ASML’s cutting-edge High-NA technology.
- TSMC announced mass-production High-NA deployment beginning in 2030, reinforcing long-term equipment demand.
- Analysts maintain a Strong Buy rating on ASML, with price targets suggesting 29% potential appreciation.
Shares of ASML Holding advanced roughly 4% to $1,870.48 this week following news that the Netherlands-based lithography giant has expanded its partnership with Samsung centered on High-NA extreme ultraviolet technology.
The September 8 collaboration agreement also encompasses joint development of enlarged 12-inch photomasks. Samsung has committed to deploying High-NA EUV systems for volume DRAM manufacturing by 2028.
This represents a significant milestone for ASML. Until recently, High-NA lithography tools were perceived primarily as costly, experimental platforms.
Today, they’re transitioning into viable production-grade equipment. Intel has already run more than one million wafers through High-NA systems, reporting that critical production benchmarks are achieving target levels.
Intel currently employs High-NA technology on specific layers within its 18A process node. This type of real-world validation from a major customer provides crucial credibility for ASML.
Major Foundries Are Committing Resources
TSMC has also entered the equation. The world’s leading contract chipmaker intends to deploy High-NA for volume manufacturing beginning in 2030.
TSMC is collaborating with ASML on the development of those expanded photomasks as well. The objective is enhanced scanner throughput and reduced per-chip manufacturing expenses.
As artificial intelligence semiconductor architectures grow increasingly sophisticated, TSMC anticipates additional process layers will necessitate High-NA capabilities. Every additional layer translates into increased demand for ASML’s most expensive systems.
ASML isn’t standing idle. The company has announced plans to increase its 2027 low-NA EUV production capacity by 30%, rising from approximately 65 units in 2026.
By July, ASML’s 2027 EUV manufacturing slots were already nearly fully reserved. This provides the company with a solid foundation to convert backlog into revenue.
Potential Headwinds Remain
China represents the most significant uncertainty. A Reuters investigation revealed that domestically manufactured immersion DUV equipment has begun production within China.
These indigenous machines remain substantially inferior to ASML’s offerings. However, continued advancement could gradually reduce China’s dependence on imported lithography tools.
This is noteworthy because China accounted for roughly 16% of ASML’s revenue during the first half of 2026. Trade restrictions already prevent ASML from shipping EUV and certain advanced DUV platforms to Chinese customers.
Valuation presents another consideration. ASML currently trades above 32 times forward earnings, offering minimal margin for execution issues.
The stock also sits approximately 48% above a GF Value benchmark of roughly $1,270. Any postponement in High-NA rollout schedules could trigger sharper-than-normal price corrections.
Despite these concerns, Wall Street maintains an optimistic stance. The consensus rating is Strong Buy, supported by six Buy recommendations issued over the last three months.
The mean analyst price target stands at $2,391.80, implying approximately 29% appreciation from present levels. Neither specific system quantities nor delivery schedules were revealed in conjunction with the Samsung announcement.
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