The Indispensable Technology Behind the World’s Most Advanced Chips
From the processor in your iPhone to the AI accelerators powering the latest supercomputers, the most sophisticated chips on the planet depend on an extraordinary piece of technology. This technology is so complex and specialized that only one company in the world has successfully mastered it: ASML, headquartered in the Dutch town of Veldhoven. Without ASML’s extreme ultraviolet (EUV) lithography systems, the development and manufacturing of cutting-edge semiconductors would face a standstill.
This is not an exaggeration or marketing spin. It is a close-to-literal explanation of how modern chips are patterned and produced in the semiconductor industry today.
ASML: The Sole Provider of EUV Lithography Systems
ASML holds an unparalleled position in the semiconductor manufacturing ecosystem as the only company selling production-ready EUV lithography systems worldwide. It dominates the commercial EUV market and accounts for more than 80% of the broader lithography market. Its critical customers include semiconductor giants such as TSMC, Samsung, Intel, Micron, and SK hynix, who deploy ASML’s machines at scale.
The most delicate and advanced layers of nearly every leading-edge chip—from Nvidia’s GPUs to Apple’s processors and AMD’s CPUs—are produced using ASML’s EUV systems. Importantly, ASML itself does not manufacture chips; instead, it builds the machines that print the intricate patterns onto silicon wafers, making it the linchpin of the semiconductor supply chain.
At the forefront of technology, ASML stands alone with no direct competitors capable of producing comparable EUV systems for mass production.
The Extraordinary Complexity Behind the Machine
Understanding why ASML’s EUV system is so difficult to build requires delving into the physics of semiconductor fabrication. To pattern the most critical layers of today’s advanced chips, manufacturers need nanometre-scale precision combined with light at an extremely short wavelength. EUV light, with a wavelength of 13.5 nanometres, is far shorter than the deep ultraviolet (DUV) light used in prior lithography tools.
Generating EUV light is an engineering marvel. Inside the machine, roughly 50,000 times per second, microscopic droplets of molten tin are fired into a vacuum chamber and struck by a high-powered carbon dioxide laser. As Zeiss explains the process, each droplet is hit twice—first to flatten it, then to vaporize it into plasma heated to approximately 220,000 degrees Celsius, about 40 times hotter than the Sun’s surface. This plasma emits the EUV light essential for chip patterning.
Because EUV light is absorbed almost entirely by air and glass, it cannot be focused using conventional lenses. Instead, the entire optical path is maintained under vacuum and uses mirrors of unparalleled smoothness, supplied by Zeiss in Germany, to precisely direct the light. The laser components come from TRUMPF, and the light source roots trace back to Cymer, which ASML acquired. The company’s real engineering triumph lies in integrating these highly specialized components into a reliable, factory-ready machine.
ASML’s EUV lithography system is routinely described as the most complex machine ever mass-produced, a claim difficult to dispute given the precision and scale involved [Works in Progress].
Why EUV is Essential, Not Optional
EUV lithography is far from a luxury; it is the technology that makes manufacturing at the most advanced semiconductor nodes economically feasible. Older DUV tools require multiple patterning steps to create the finest features, increasing the number of process steps, costs, and potential defects.
A single EUV exposure can replace several of these cycles, streamlining production. For high-volume manufacturing at 5nm, 3nm, and even 2nm process nodes, EUV has become indispensable for the most critical layers, although DUV remains in use for other layers.
The Cost of Cutting-Edge Innovation
ASML’s EUV machines carry a hefty price tag. A standard EUV system costs around $200 million, while the latest generation, the High-NA EUV system, costs approximately $400 million—about double the price of its predecessors. The first High-NA systems are already operational at Intel and Samsung, with SK hynix among the early adopters. High-volume production using High-NA EUV is anticipated between 2027 and 2028.
The financial scale is immense. ASML reported €32.7 billion in revenue for 2025 and ended the year with an order backlog of €38.8 billion, having shipped 48 EUV systems during that period. In a notable single order, SK hynix committed nearly $7.9 billion for about 30 EUV machines, with deliveries expected by the end of 2027. ASML’s first-quarter sales in 2026 reached €8.8 billion.
From Humble Beginnings to a European Tech Giant
It is remarkable to consider ASML’s origins. Founded in 1984, the company once operated out of a leaky shed next to a Philips building and faced years of financial uncertainty. Today, as of early 2026, ASML has surpassed SAP to become one of Europe’s most valuable technology companies, boasting a market capitalization of around half a trillion dollars.
A Geopolitical Nexus and the Single Point of Failure
ASML’s dominant position also makes it a geopolitical focal point, especially amid ongoing US-China tensions over semiconductor technology. Export controls have increasingly restricted ASML’s ability to sell and service its machines in China. Once accounting for nearly half of ASML’s revenue at its 2024 peak, China’s share has been guided down to approximately 20% for 2025 and 2026 [Tom’s Hardware].
China is actively pursuing strategies to reduce dependence on ASML’s technology. In December 2025, Reuters reported that Shenzhen-based engineers, some former ASML employees, had developed a reverse-engineered EUV prototype capable of generating EUV light, though it has yet to produce functional chips. Beijing aims to achieve competitive EUV technology by around 2028, while many experts predict a realistic timeline closer to 2030. ASML’s CEO Christophe Fouquet has emphasized the significant challenges China faces in closing this technological gap.
This ongoing dynamic represents one of the defining technological and geopolitical questions of the decade. For now, the most extraordinary advancements in computing—fueling the AI revolution and other breakthroughs—rely on machines built by a single company in one small Dutch town.
The leading edge of semiconductor technology has a precise address: Veldhoven, Netherlands.
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