ASML’s Chip Power Play: The Hidden Giant Behind Every AI Breakthrough

ASML, the Dutch powerhouse in advanced photolithography tools, warned that new U.S. tariffs on its extreme-ultraviolet (EUV) machines could severely disrupt global chip manufacturing. As the sole supplier of these precision systems, ASML cautioned that trade duties would delay factory expansions, inflate costs by 20–25%, and slow innovation across the semiconductor ecosystem.

Why ASML Holds Unmatched Power

ASML develops and produces the complex photolithography systems that etch nano-scale patterns on silicon wafers. Its EUV machines, often valued at $200 million to $400 million each, enable production at cutting-edge nodes (5 nm, 3 nm, even sub-2 nm). These systems are so large and delicate that transporting them requires multiple Boeing 747 flights.

In addition to EUV machines, ASML provides deep-UV systems, metrology software, technical training, and critical maintenance—making it a cornerstone of the chipmaking infrastructure worldwide.

Clients Depend on ASML’s Edge

Major chipmakers like TSMC, Samsung, Intel, and Micron rely entirely on ASML’s EUV tools to stay competitive. TSMC uses these machines to manufacture high-performance chips for Apple, Nvidia, and Tesla.

Intel is already testing ASML’s next-generation High-NA EUV systems, while Samsung and Micron are actively deploying them to support their AI and data center goals.

High-NA EUV: The Cutting Edge

ASML recently introduced its High-NA EUV systems, which feature larger numerical apertures allowing for ultra-precise chip patterning at sub-2 nm scales. These machines, priced between $370 million and $400 million, are designed to push Moore’s Law into a new era.

Although adoption is still in early stages, the technology is expected to cut production times by up to 60 percent—significantly boosting output for logic and AI chip manufacturers.

Tariffs Threaten Growth Momentum

In the first quarter of 2025, ASML reported slower-than-expected order intake (€3.9 billion versus estimates of €4.9 billion) and warned that tariff-related uncertainties could impact its full-year forecast (€30–35 billion). CFO Roger Dassen called on the U.S. to clarify its tariff policies and noted that ASML plans to pass most cost increases on to its American customers.

Global Impact on Innovation and Security

ASML holds a near-monopoly in EUV technology, with an estimated 80–100% global market share. This makes the company indispensable to semiconductor innovation. If the U.S. restricts exports further, it could fracture global chip supply chains and delay advancements in AI, autonomous vehicles, data centers, and consumer electronics.

There’s also the risk that countries like China could fast-track development of domestic alternatives, which would erode Western technological leadership.

ASML’s situation underscores the need for global cooperation, not isolationism. In a world increasingly powered by advanced chips, how we manage trade policy may determine who leads the next technological revolution.