ASML secured two major customer commitments on Tuesday, as Samsung and TSMC both confirmed plans to use its High NA extreme ultraviolet (EUV) lithography machines for future chip production.

ASML stock rose around 1.6% in early trading on the news, extending a gain of roughly 120% over the past 12 months.

Each High NA machine costs approximately $400 million and uses wider lenses to print circuit lines up to three times smaller on silicon wafers in a single pass. That level of precision is increasingly in demand as chipmakers pursue more complex designs for AI hardware. ASML is the only supplier of EUV lithography equipment in the world, which is why its order book is watched closely as a gauge of where leading-edge chip manufacturing is heading.

Until now, High NA adoption had been led by Intel, the first chipmaker to take delivery of the machines. Samsung and TSMC had proceeded more cautiously, weighing the tools' steep cost against the technical alternatives of extending current EUV technology, so Tuesday's commitments mark a broadening of the customer base beyond a single early adopter.

Samsung said it will use the machines to produce DRAM memory chips starting in 2028, aiming to extend its memory scaling roadmap and improve production efficiency. TSMC set a later start date of 2030, targeting advanced chips where transistor architecture is becoming more complex due to AI workloads.

TSMC CEO C.C. Wei said the company believes in working through technical challenges early, before they become cost problems. TSMC accounts for roughly 16% of ASML's total sales, according to Bloomberg, making its commitment a key signal for investors tracking High NA adoption.

Photomask Upgrade Adds More Upside

Beyond the machine commitments, all four companies — ASML, TSMC, Samsung, and Intel — agreed to move from the current 6-inch photomask standard to a larger 12-inch format.

Photomasks work like stencils, using light to print tiny circuit patterns onto silicon wafers. Moving to a larger format has historically required coordination across the whole supply chain — mask makers, chip designers, and equipment makers alike — which is why all four companies signing on together matters for the timeline. ASML Chief Technology Officer Marco Pieters said the larger mask size could lift High NA machine output by 40% while also making chip design easier.

Intel has been working on the 12-inch mask project for over three years as it builds out its manufacturing network. TSMC plans to begin using High NA tools with standard 6-inch masks in 2030, then build a test line for 12-inch masks by 2031.

Wall Street Reaction

Barclays said the announcements "should provide more visibility on adoption which has been a key debate," describing the news as "a positive" for the stock.

The bank also noted that ASML faces a decision on whether to expand EUV capacity beyond targets it has already set, observing that demand is "clearly strong."

ASML has said it will add about 30% total EUV capacity in 2027, but has not given a recent forecast on High NA unit volumes specifically. With Samsung's first High NA production slated for 2028 and TSMC's for 2030, analysts and investors will be watching future earnings calls for any update on High NA unit guidance and on whether ASML moves to expand capacity beyond its stated targets.

Wall Street analysts hold a Strong Buy consensus on ASML, based on six Buy ratings over the past three months. The average 12-month price target stands at $2,468 per share, implying roughly 44% upside from current levels.

Amsterdam-listed ASML shares were flat to slightly lower in early European trading before the US session opened.

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