> ## Content Index > Fetch the complete content index at: https://www.sotkn.com/llms.txt > Use this file to discover other available public pages before exploring further. # What Does ASML Do? The Lithography Scanner Model - URL: https://www.sotkn.com/stack/semiconductors/what-does-asml-do/ - Published: 2026-10-02T04:41:46.000Z - Updated: 2026-10-02T04:41:46.000Z - Description: ASML sells lithography scanners and the upgrades that keep them running: it gets paid when a Low-NA EUV box is recognised, while 2027 Low-NA is already close to fully ordered. - Author: Sean - Tags: #layer-semiconductors ASML sells lithography scanners and the upgrades that keep them running: it gets paid when a Low-NA EUV box is recognised, while 2027 Low-NA is already close to fully ordered. `SEMICONDUCTORS` · `Data as at 15 Jul 2026` · `Next update: after ASML Q3 2026 results` **Affects:** Semiconductors · Taiwan · US It is the equipment company on the [semiconductors](https://www.sotkn.com/stack/semiconductors/) layer: the only firm that sells production [EUV](https://www.sotkn.com/explained/euv-lithography-explained/) scanners. The foundry that buys most of the leading-edge boxes is [TSMC](https://www.sotkn.com/stack/semiconductors/cowos/what-does-tsmc-do/). See [foundry and advanced packaging](https://www.sotkn.com/explained/foundry-advanced-packaging-explained/). **In short:** ASML designs, builds, and services the machines that print transistor patterns on wafers. Q2 2026 total net sales were €9.326 billion, with €6.565 billion of system sales — €3.8 billion of that EUV, including one High-NA — and €2.762 billion of Installed Base Management. The model works if Low-NA boxes keep shipping against a plan of about 65 this year, and if the extra 30% of Low-NA capacity planned for 2027 is already spoken for. High-NA is a later insertion clock, not this year's invoice. *Education only, not advice to buy or sell any security. Figures are from company filings and company releases dated as shown.* ## Numbers that matter | Print | Figure | Date | What it tells us | | ------------------------------ | ------------------------------------- | -------------------------- | ------------------------- | | Total net sales | €9.326bn | Q2 2026 · 15 Jul 2026 | Printed | | Net system sales | €6.565bn | Same 6-K | Who gets paid on the box | | EUV system sales | €3.8bn, including 1 High-NA | Investor call, 15 Jul 2026 | Volume clock | | Installed Base Management | €2.762bn | 6-K, 15 Jul 2026 | Service and field options | | Low-NA EUV 2026 plan | \~65 systems | CEO, 15 Jul 2026 | Stuck | | 2027 Low-NA | +30% capacity; close to fully ordered | CFO, 15 Jul 2026 | Booked | | New / used lithography systems | 86 new + 5 used = 91 | Press release, 15 Jul 2026 | Shipped | | FY 2026 total net sales guide | €43–45bn | Raised, 15 Jul 2026 | Outlook, not a print | Sources: [ASML Q2 2026 results](https://www.asml.com/en/news/press-releases/2026/q2-2026-financial-results?ref=sotkn.com) (company), 15 Jul 2026; [US GAAP financial statements](https://www.sec.gov/Archives/edgar/data/937966/000162828026048235/financialstatementsusgaa.htm?ref=sotkn.com) (Form 6-K exhibit), 15 Jul 2026; [investor call transcript](https://ourbrand.asml.com/asset/1fd3908a-0381-47b5-9b69-a3094f656651/2026%5F07%5F15-ASML-Transcript-investor-call-Q2-2026.pdf?ref=sotkn.com), 15 Jul 2026\. Status chips are Second Order's read. EUV system sales are the company's rounded call figure; the 6-K does not split EUV versus non-EUV in the income statement. ## What does ASML actually do? Three steps, in order. **Print. Ship. Service.** 1. **It prints the pattern.** Lithography is how a foundry draws the circuit: light hits a mask, the mask throws a shadow onto resist, and that pattern becomes the transistor. Deep ultraviolet (DUV) uses longer-wavelength light. Extreme ultraviolet (EUV) uses 13.5-nanometre light so a single exposure can print tighter pitches. ASML sells both. Low-NA EUV (the NXE family, numerical aperture 0.33) is today's volume workhorse. High-NA (the EXE family, numerical aperture 0.55) prints a smaller field at higher resolution. They are not interchangeable boxes on the same clock. The mechanism is [EUV, explained](https://www.sotkn.com/explained/euv-lithography-explained/). This page is the company that sells the scanner. 2. **It ships a finite number of boxes.** In the quarter ended 28 June 2026 it sold 86 new lithography systems and 5 used ones — 91 in total, matching the 6-K unit count. CEO Christophe Fouquet said the company plans to ship around 65 Low-NA EUV systems in 2026, and about 130 DUV immersion systems. A foundry can raise a capital budget. It cannot print N2 layers without a scanner that has been built, installed, and qualified. 3. **It services and upgrades the installed base.** Installed Base Management is ASML's name for net service and field-option sales: the spare parts, field engineers, and upgrades that keep scanners running and lift output on machines already on a fab floor. That invoice does not wait for a new box to leave Veldhoven. | Step | What it means | Where the risk sits | | ------- | ------------------------------------------------------ | ------------------------------------------------------------- | | Print | DUV, Low-NA EUV, High-NA EUV, plus metrology | Which layer the foundry can actually expose | | Ship | A counted number of recognised systems | Output this year versus orders already covering next year | | Service | Installed Base Management — upgrades and field options | Whether the installed fleet keeps earning after the box is in | Optics for EUV are built with Carl Zeiss SMT. ASML is the assembler and the seller. Nikon and Canon still sell DUV. Neither sells a production EUV scanner. ## How does ASML make money? It gets paid when a system is recognised, and again when the installed fleet is serviced or upgraded. Three things decide which cash prints, and when: - **Recognition** — a scanner in backlog is not revenue until ASML's accounting says it is - **Mix** — EUV versus DUV, logic versus memory, Low-NA versus High-NA - **The installed base** — idle tools still need parts; busy tools buy upgrades On 15 July 2026 the 6-K printed **€9,326.5 million** of total net sales: **€6,564.8 million** of net system sales and **€2,761.7 million** of net service and field-option sales. Gross profit was **€5,035.4 million** (gross margin 54.0%). Net income was **€2,917.6 million**, or 31.3% of sales. Basic EPS was **€7.59**. Cash plus short-term investments were **€7,581.5 million** (cash €6,671.9 million + STI €909.6 million), matching the press-release €7,582 million rounding. The call split the system invoice. Net system sales were €6.6 billion, of which **€3.8 billion was EUV** — including sales of one High-NA system — and **€2.8 billion was non-EUV**. Logic was 51% of net system sales, memory 49%. **Our arithmetic.** Using the call's rounded €3.8 billion against the 6-K's €6,564.8 million of system sales, EUV was about **58%** of the system invoice (3.8 ÷ 6.5648 = 0.579). Against total net sales of €9,326.5 million, EUV systems were about **41%** (3.8 ÷ 9.3265 = 0.407). Installed Base Management was about **30%** of the quarter (2.7617 ÷ 9.3265 = 0.296). Put another way, roughly seven-tenths of the invoice was a new or used box, and three-tenths was the fleet already on the floor. **Who gets paid.** ASML, when a Low-NA system is recognised and when field options land. Zeiss, on the optics inside the EUV column. **Who pays.** TSMC, Samsung, Intel Foundry, and the memory makers adding EUV layers. **Money sticks** at the recognised scanner and at the upgrade, not at a foundry capex headline. TSMC's August board check put **US$16.035 billion** on advanced-technology machinery — the bucket a scanner sits in — but a board appropriation is not an ASML shipment this quarter. See the [Taiwan CapEx-split Pulse](https://www.sotkn.com/markets/taiwan/taiwan-tsmc-capex-split-september-2026/). Fouquet raised the 2026 sales outlook to **€43–45 billion**, with gross margin **54–56%**. Q3 was guided at **€11.0–12.0 billion**. That is outlook. It is not Q3 cash. ## What limits it? Low-NA output first. High-NA mix second. Neighbour clocks third. 1. **This year's Low-NA plan is still about 65, and 2027 is already spoken for.** Fouquet said the company is adding 30% to 2026 Low-NA EUV capacity of around 65 for 2027, and investigating another 30% for 2028\. The same step applies to DUV immersion from a 2026 base of around 130\. **Our arithmetic:** 65 × 1.30 = **84.5**, the \~85 Low-NA boxes that 2027's add implies. 65 × 1.30 × 1.30 = **109.85**, the \~110 case it said it was investigating for 2028 — investigating, not a booked shipment plan. CFO Roger Dassen said 2027 Low-NA is "close to being fully covered with orders." A 30% add that is already covered is not an open queue. 2. **High-NA is insertion, not a substitute for the 65.** Q2 recognised one High-NA system inside that €3.8 billion of EUV sales. On 15 July 2026 ASML said Intel Foundry is using High-NA on Intel 18A for a subset of Core Ultra Series 3 (Panther Lake) layers, dual-qualified against the NXE (Low-NA) platform. On 7–8 September Intel Foundry and ASML said more than one million wafers had been processed across certification, R&D, and select production layers. That is insertion evidence. It is not one million commercial Panther Lake wafers on High-NA alone, and it is not a replacement for the Low-NA 65. 3. **China is a DUV mix, not an EUV escape.** Dassen said China-related business should stay around 20% of 2026 total net sales, "mainly related to an increased demand in mainstream logic." That is DUV. EUV remains a licensed, restricted tool. 4. **A printed die still needs a stack and a slot.** EUV is earlier than [CoWoS](https://www.sotkn.com/explained/cowos-explained/) and [HBM](https://www.sotkn.com/explained/hbm-explained/). TSMC Chairman C.C. Wei said packaging capacity was "so tight that now it limits my customers' growth" ([Q2 2026 call](https://investor.tsmc.com/english/quarterly-results/2026/q2?ref=sotkn.com), 16 Jul 2026). [SK hynix](https://www.sotkn.com/stack/semiconductors/hbm/what-does-sk-hynix-do/) still has to allocate and attach the cube. The [CoWoS-L Wire](https://www.sotkn.com/wire/cowos-l-mainstream-through-2028-wire/) is the neighbour finish-line, not ASML's invoice. Do not read a sold-out scanner book as a shipped accelerator. The honest uncertainty is conversion of the 65\. A raised €43–45 billion guide can still miss the Low-NA unit plan if installs slip. ## Who else does this? Roles, not a league table. | Company | What it does | What makes it different | | -------------------------------- | ------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **ASML** | Production EUV scanners, DUV, metrology, Installed Base Management | Only qualified EUV seller; \~65 Low-NA planned for 2026; 2027 close to fully ordered | | **Nikon / Canon** | DUV lithography | No production EUV scanner. They compete on older light, not on NXE | | **Carl Zeiss SMT** | Projection optics inside the EUV column | Partner, not a second scanner vendor | | **Applied Materials, Lam, KLA** | Deposition, etch, inspection / metrology | Other process tools. They do not print the EUV layer. See [memory process tools](https://www.sotkn.com/explained/memory-process-tools-hbm-explained/) | | **TSMC, Samsung, Intel Foundry** | Buy and run the scanners; sell wafers and packages | Get paid when EUV layers yield. TSMC still owns the CoWoS join. See [What Does TSMC Do?](https://www.sotkn.com/stack/semiconductors/cowos/what-does-tsmc-do/) | What separates them is who can ship a qualified EUV box this year, and whether HBM and CoWoS-L then let a printed die become a module. ASML sits on the tool seat, not the package seat. ## What would change this view? The read on the model weakens if: - Q3 or Q4 2026 prints Low-NA shipments tracking well below the \~65 plan - 2027 Low-NA coverage opening up — cancellations, push-outs, or a capacity add that is not already ordered - High-NA revenue staying "one system a quarter" while being sold as this year's volume clock - China mix moving EUV, or export licensing tightening DUV enough to hit the guided \~20% - Foundry capex cuts that show up in ASML's order language, not only in a TSMC monthly sales print - CoWoS or HBM remaining so tight that printed wafers queue anyway — the neighbour clock stealing the bind It stays intact while the \~65 Low-NA plan is the volume clock, 2027 is close to fully covered, Installed Base Management keeps a large share of the invoice, and High-NA remains insertion at Intel rather than a replacement for NXE. ## Practical takeaways - ASML's model on this layer is Print → Ship → Service: scanners, a counted number of recognised boxes, then Installed Base Management - Q2 2026: €9.326bn sales, €6.565bn systems, €3.8bn EUV including one High-NA, €2.762bn IBM, 54.0% gross margin, €2.918bn net income - **Our arithmetic:** EUV \~58% of system sales and \~41% of the quarter; IBM \~30%; 86 new + 5 used = 91 lithography systems - Stuck step: \~65 Low-NA systems this year, with 2027 close to fully ordered on a 30% capacity add (\~85 on our math) - High-NA is Intel 18A insertion (one Q2 system; >1 million wafers across certification, R&D, and select layers as at 7–8 Sep 2026), not the 65 - A printed die still waits on [HBM](https://www.sotkn.com/stack/semiconductors/hbm/) and [CoWoS](https://www.sotkn.com/stack/semiconductors/cowos/) ## FAQ **What does ASML do?** ASML designs, builds, and services lithography scanners — the machines that print transistor patterns on wafers — plus metrology and inspection. It is the only company that sells production EUV scanners. Low-NA systems do today's volume; High-NA is a later insertion clock. **What does ASML do in simple terms?** It makes the machines a chip factory uses to draw the circuit on a wafer, then charges again to keep those machines running and upgraded. **Is ASML profitable?** Yes on the dated print. Q2 2026 net income was €2.918 billion on €9.326 billion of sales, a 31.3% net margin, with a 54.0% gross margin (Form 6-K, 15 Jul 2026). That is not a forecast. **How is ASML different from TSMC?** TSMC prints dies and joins them to HBM on CoWoS. ASML sells TSMC — and Samsung, Intel Foundry, and memory makers — the scanners that print the tightest layers. One is the foundry. The other is the tool vendor. See [What Does TSMC Do?](https://www.sotkn.com/stack/semiconductors/cowos/what-does-tsmc-do/). **What is ASML's Low-NA plan?** Around 65 Low-NA EUV systems in 2026, with a 30% capacity add planned for 2027 that Dassen said is close to fully covered with orders, and a further 30% under investigation for 2028. **Should I buy ASML shares?** We do not make buy or sell calls, and nothing here is a recommendation. What we can tell you is what the company does, how it gets paid, and which figures would change the picture. The decision is yours. ## Keep reading on the map - **The layer:** [Semiconductors](https://www.sotkn.com/stack/semiconductors/) - **The mechanism:** [EUV, explained](https://www.sotkn.com/explained/euv-lithography-explained/) - **The foundry:** [Foundry and advanced packaging](https://www.sotkn.com/explained/foundry-advanced-packaging-explained/) · [What Does TSMC Do?](https://www.sotkn.com/stack/semiconductors/cowos/what-does-tsmc-do/) - **The neighbours:** [CoWoS, explained](https://www.sotkn.com/explained/cowos-explained/) · [HBM, explained](https://www.sotkn.com/explained/hbm-explained/) · [What Does SK hynix Do?](https://www.sotkn.com/stack/semiconductors/hbm/what-does-sk-hynix-do/) - **The Wire:** [CoWoS-L through 2028](https://www.sotkn.com/wire/cowos-l-mainstream-through-2028-wire/) · [SK hynix HBM5–CoWoS validation](https://www.sotkn.com/wire/sk-hynix-hbm5-cowos-validation-partner-year-wire/) - **Where it happens:** [Taiwan](https://www.sotkn.com/markets/taiwan/) · [TSMC CapEx split](https://www.sotkn.com/markets/taiwan/taiwan-tsmc-capex-split-september-2026/) · [US](https://www.sotkn.com/markets/us/) · [Korea](https://www.sotkn.com/markets/korea/) - **Who designs the die:** [Who makes AI chips](https://www.sotkn.com/explained/who-makes-ai-chips/) The members cut on the long clock is already live: [Where does the stuck step move?](https://www.sotkn.com/analysis/where-does-the-stuck-step-move/). This page stays the free Stack read of the ASML model. ## Sean Writes Second Order by TKN — a plain-English map of AI infrastructure. Who gets paid, where money sticks, which step is stuck. Not investment advice. [Author page →](https://www.sotkn.com/author/sean/) · [Editorial standards →](https://www.sotkn.com/editorial-standards/) ## How we check this Figures come from company filings and company releases, each dated below. EUV versus non-EUV system sales are the investor-call split; the 6-K prints the totals. 2027–2028 capacity adds are company plans or investigations, not shipments. The one-million-wafer High-NA print spans certification, R&D, and select layers. Where we work something out ourselves, the arithmetic is shown in full. **Last reviewed:** 2 Oct 2026 · **Next review:** after ASML Q3 2026 results print Low-NA EUV shipments against the \~65 plan Spot an error? Tell us and we will correct it and note the change here. [Our editorial standards →](https://www.sotkn.com/editorial-standards/) ## Sources 1. ASML, [*ASML reports €9.3 billion total net sales and €2.9 billion net income in Q2 2026*](https://www.asml.com/en/news/press-releases/2026/q2-2026-financial-results?ref=sotkn.com) (company), 15 Jul 2026 — €9.3bn sales, 54.0% gross margin, €2.9bn net income, 86 new / 5 used lithography systems, IBM €2.762bn, Q3 guide €11.0–12.0bn, FY 2026 sales €43–45bn, Low-NA \~65 with +30% for 2027, DUV immersion \~130 2. ASML, [*Financial statements US GAAP Q2 2026*](https://www.sec.gov/Archives/edgar/data/937966/000162828026048235/financialstatementsusgaa.htm?ref=sotkn.com) (Form 6-K exhibit 99), 15 Jul 2026 — net system sales €6,564.8m, net service and field option sales €2,761.7m, total net sales €9,326.5m, gross profit €5,035.4m, net income €2,917.6m, 91 lithography systems, cash €6,671.9m, short-term investments €909.6m 3. ASML, [*Form 6-K*](https://www.sec.gov/Archives/edgar/data/937966/000162828026048235/form6-kquarterlyfilings.htm?ref=sotkn.com), 15 Jul 2026 — exhibit index for the Q2 release 4. ASML, [*Q2 2026 investor call transcript*](https://ourbrand.asml.com/asset/1fd3908a-0381-47b5-9b69-a3094f656651/2026%5F07%5F15-ASML-Transcript-investor-call-Q2-2026.pdf?ref=sotkn.com), 15 Jul 2026 — €3.8bn EUV system sales including one High-NA, €2.8bn non-EUV, logic 51% / memory 49%, \~65 Low-NA, 2027 close to fully covered, China \~20% mainly mainstream logic 5. ASML, [*Intel Foundry and ASML Collaborate to Accelerate Industry Readiness for High-NA EUV*](https://www.asml.com/en/news/press-releases/2026/intel-foundry-and-asml-collaborate-to-accelerate-industry-readiness-for-high-na-euv?ref=sotkn.com) (company), 8 Sep 2026 — more than one million wafers processed on High-NA across certification, R&D, and volume production on select Panther Lake layers 6. Intel Foundry, [*Intel Foundry and ASML Accelerate Industry Readiness for High-NA EUV*](https://www.intel.com/content/www/us/en/newsroom/news/intel-foundry/intel-foundry-asml-accelerate-industry-readiness-for-high-na-euv.html?ref=sotkn.com) (company), 7 Sep 2026 — same High-NA wafer print; overlay, throughput and availability meeting expectations 7. TSMC, [*Q2 2026 quarterly results*](https://investor.tsmc.com/english/quarterly-results/2026/q2?ref=sotkn.com), 16 Jul 2026 — C.C. Wei packaging capacity limiting customer growth All external links `rel="nofollow noopener"`.