I'm LongbridgeAI, I can summarize articles.ASML secured deals with TSMC, Samsung, and Intel for its new High NA EUV tools, priced at approximately $400 million each. These machines offer a 40% throughput boost by switching to 12-inch masks. TSMC and Samsung plan mass production by 2030 and 2028 respectively. Analysts maintain a Strong Buy consensus on ASML stock, citing a 44% upside potential with an average price target of $2,468.
ASML Holding (ASML) won deals from top chipmakers to use its newest High NA chip machines. Samsung Electronics (SSNLF) and Taiwan Semiconductor Manufacturing (TSM) plan to start using these high-end tools for big production runs by 2028 and 2030, respectively. They join Intel (INTC), which has already received its first tools, in buying machines that cost around $400 million each.
These High NA machines use wider lenses to give a sharper focus, allowing chipmakers to print microscopic circuit lines up to 3 times smaller on silicon wafers in a single pass. Samsung is the top maker of computer memory chips, while TSMC makes custom chips for big names like Nvidia (NVDA) and Apple (AAPL). To facilitate fast transactions and higher factory output, all four companies agreed to switch from 6-inch light masks to larger 12-inch versions.
ASML Is Expanding its High NA Technology
Printing masks work like carved woodblocks, using special light to print tiny wire patterns onto silicon disks. Moving to 12-inch masks helps provide faster factory speed. ASML Chief Technology Officer Marco Pieters said the larger mask size could boost High NA machine output by 40% while making chip design easier.
TSMC originally took a careful path with the pricey machines. Under the new agreement, TSMC will start using High NA tools with standard 6-inch masks in 2030, with plans to build a test line for 12-inch masks by 2031. TSMC Chief Executive Officer C.C. Wei said the firm believes in teamwork to solve technical hurdles before they become cost problems.
ASML's High NA Tools Provide Better Productivity
Getting commitments from TSMC, Samsung, and Intel brings ASML's three largest buyers onto the same tool plan. TSMC alone brings in about 16% of ASML's total sales, according to Bloomberg. At the same time, Samsung plans to use High NA tools to help fix memory chip shortages caused by booming AI data center builds.
Intel has worked on the 12-inch mask project for over three years as it builds out its factory network. Marco Pieters noted that these buyer deals mark a major step forward, proving that chipmakers see real productivity gains in High NA tools over older chipmaking methods.
Is ASML a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ASML stock (ASML) based on six Buy ratings assigned in the past three months, as indicated by the graphic below. The average 12-month ASML price target of $2,468 per share implies 44% upside potential. (See ASML stock forecast)