ASML Holding (ASML.AS): Strong customer commitments support capacity plans, with pricing flexibility and mix shift driving margin

Research evidence excerpt

ASML Holding (ASML.AS): Strong customer commitments support capacity plans, with pricing flexibility and mix shift driving margin

er-margin service and upgrade revenues, providing a further

tailwind to margins. Overall, we continue to see multiple structural drivers

supporting margin expansion into 2027, beyond the benefit of stronger end-market

demand.

n Strong capacity roadmap, with customer visibility providing scope for further

expansion: Looking ahead, management noted that it has already secured the

majority of EUV orders required for 2027, while also receiving a meaningful number

of orders for 2028, providing strong visibility into future demand. As such, ASML is

working towards an increase of c.30% in both EUV and immersion manufacturing

capacity in 2027 and is investigating the scope for a similar step-up in 2028, with

current optimisation efforts supporting potential EUV output of around 110 systems

in 2028 through more efficient utilisation of existing cleanroom capacity. We note

that the intention to build greater capacity is grounded in customer conversations,

reflecting confidence in the underlying demand environment and a strategy of

closely matching manufacturing capability to customer needs. Notably, a significant

portion of expected demand and required capacity in 2027 is already covered by

orders (as is a meaningful portion of 2028 demand). Importantly, the company

stressed that demand discussions with customers remain ongoing, particularly for

2028, and that capacity plans continue to evolve alongside customer requirements.

As such, in the context of fluctuating demand, we see scope for further upside if

customer requirements continue to evolve (and scope for further ASML production

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