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Dutch chip equipment giant ASML posted record profits of €9.6 billion ($11.5 billion) for 2025, demonstrating the company’s continued dominance in the semiconductor equipment market despite geopolitical headwinds affecting its China business.
The Veldhoven-based company reported total sales of €32.7 billion, driven largely by surging demand for advanced chipmaking machinery needed to power artificial intelligence applications. The financial results highlight ASML’s crucial position in the global technology supply chain as the sole producer of extreme ultraviolet (EUV) lithography machines required to manufacture the world’s most advanced semiconductor chips.
Despite the strong performance, ASML announced plans to cut approximately 1,700 jobs, representing about 4% of its global workforce. According to company statements, these reductions will primarily affect technology and IT departments as part of a broader restructuring initiative.
“In the last months, many of our customers have shared a notably more positive assessment of the medium-term market situation, primarily based on more robust expectations of the sustainability of AI-related demand,” said ASML President and Chief Executive Officer Christophe Fouquet. “This is reflected in a marked step-up in their medium-term capacity plans and in our record order intake.”
The job cuts come at a time when the company is financially robust, suggesting a strategic repositioning rather than a response to financial difficulties. In an internal communication to employees, ASML management emphasized that the company was “choosing to make these changes at a moment of strength” and that the restructuring would allow ASML to “innovate more and innovate better.”
Industry analysts note that ASML’s focus on streamlining operations comes as competition in the semiconductor equipment space intensifies, with companies like Applied Materials and Lam Research also vying for market share in the rapidly evolving landscape. By concentrating resources on engineering and innovation, ASML appears to be reinforcing its technological edge in the most advanced segments of the market.
The company’s optimistic outlook for 2026 projects continued growth, particularly in sales of its flagship EUV lithography systems. These sophisticated machines, which can cost over €150 million each, are essential for producing the most advanced chips used in data centers, AI applications, and high-performance computing.
ASML’s growth trajectory persists despite significant export restrictions imposed by the Dutch government on certain advanced chipmaking equipment to China. These measures, initially implemented in 2023 and subsequently expanded, align with U.S. policy aimed at limiting China’s access to advanced semiconductor manufacturing capabilities that could have military applications.
The export controls have complicated ASML’s business in China, which has historically been a significant market for the company. However, increased demand from other regions, particularly from major chipmakers like TSMC, Samsung, and Intel, has helped offset potential losses in the Chinese market.
The semiconductor industry’s current boom cycle is largely fueled by AI applications, which require massive computing power and sophisticated chips. Leading cloud service providers and tech companies are investing heavily in AI infrastructure, driving demand for the most advanced semiconductors and, by extension, ASML’s lithography equipment.
Market observers note that ASML’s continued profitability and growth amid geopolitical tensions underscore both the company’s technological leadership and the critical importance of advanced semiconductor manufacturing in the global economy. As governments worldwide increasingly view semiconductor capability as a matter of national security and economic competitiveness, ASML’s strategic position at the heart of this ecosystem continues to strengthen.
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16 Comments
While the job cuts are concerning, ASML’s financial results demonstrate the immense value of their proprietary EUV technology in the AI/ML era. They seem to be navigating a complex market well.
Absolutely. ASML’s ability to capitalize on the AI boom and maintain their industry-leading position is a testament to their technical expertise and strategic execution.
Impressive financial results for ASML. As a key supplier to the semiconductor industry, their performance is a good barometer of the overall tech market.
Absolutely. ASML’s numbers suggest the AI/ML segment remains a bright spot even as other tech sectors face headwinds.
Impressive numbers from ASML! Semiconductor equipment makers seem to be riding the wave of AI-driven demand. Curious to see how the job cuts will impact the company’s operations going forward.
Agreed, the AI boom is clearly boosting ASML’s bottom line. Hopefully the job cuts don’t hamper their ability to meet customer needs.
ASML’s dominance in the EUV lithography market is really paying off. This financial performance underscores the critical role they play in the global tech supply chain.
No doubt, ASML’s proprietary technology gives them a major advantage. The AI-driven demand seems to be a real boon for their business.
Interesting to see the impact of AI-driven demand on ASML’s results. As a key supplier, their financials provide a useful window into broader tech industry trends.
That’s a good point. ASML’s performance is a bellwether for the semiconductor equipment segment and the health of the tech ecosystem as a whole.
ASML’s dominance in EUV lithography is really paying dividends. Though the job cuts are unfortunate, the overall financial performance is impressive.
Agreed. ASML’s technology leadership in such a critical part of the semiconductor supply chain is a major competitive advantage.
Restructuring and job cuts are never easy, but ASML appears to be managing the transition well. Curious to see if the AI demand remains as robust as they expect.
That’s a good point. The sustainability of the AI boom will be key to ASML’s continued success. They’ll need to balance cost-cutting with investing for the future.
The job cuts at ASML are concerning, but I suppose they need to adjust their workforce to match the current demand levels. Curious to see how this impacts their long-term competitiveness.
That’s a fair point. Rightsizing the workforce is tricky, but ASML will need to ensure they maintain the talent and expertise needed to stay ahead of the curve.