ASML Holding NV (NASDAQ: ASML) recently showcased its chipmaking machine, valued at €350 million ($380 million), which is as heavy as two Airbus A320 aircraft.
High-NA extreme ultraviolet machine represents a significant leap forward in semiconductor manufacturing technology.
Intel Corp (NASDAQ: INTC), a significant player in the technology industry, has already ordered this machine, with the first unit arriving at an Oregon factory in late December. Intel aims to initiate chip production using this advanced system by late 2025, Bloomberg reports.
This state-of-the-art machine can etch semiconductor lines as thin as 8 nanometers, which is 1.7 times smaller than what previous-generation machines could achieve.
The ability to fit more transistors onto a chip means that it can offer higher processing speeds and greater memory capacity.
ASML executives have highlighted the machine's critical role in advancing AI technology, which demands substantial computing power and data storage.
According to ASML's CEO, Peter Wennink, their technology is indispensable for meeting the escalating needs of AI, making it a vital driver of the company's business.
The company has seen record orders for its extreme ultraviolet lithography (EUV) machines in the last quarter, signaling strong optimism from major industry players like Intel, Samsung Electronics Co (OTC: SSNLF), and Taiwan Semiconductor Manufacturing Co (NYSE: TSM). Installing the first machine at Intel's D1X development factory was a monumental task, involving 250 engineers and six months of work.
In January, ASML reported a fiscal fourth-quarter 2023 net sales of €7.2 billion, up 12.5% year-on-year. In USD, sales of $7.79 billion beat the consensus of $7.53 billion. The EPS of $5.61 beat the street view of $5.27. China accounted for 39% of ASML's sales in the fourth quarter and became its largest market in 2023.
Price Action: ASML shares traded lower by 0.73% at $942.65 premarket on the last check Monday.