ASML shares surge as TSMC’s tool demand nearly doubles

ASML Holding ↗ 2.81% surged 4% on Friday after a wave of developments underscored the Dutch chipmaking equipment giant's central role in the global AI buildout. The rally was fueled by TSMC's Taiwan Semiconductor Manufacturing Company Limited ↗ 2.95% disclosure that its quarterly equipment needs have nearly doubled since late 2025, alongside ASML's announcement that it will expand its Japanese workforce by 40% to support advanced chip production.

TSMC's Equipment Appetite Surges

TSMC Deputy Co-Chief Operating Officer Cliff Hou revealed at Semicon Taiwan 2026 on September 2 that the company's quarterly demand for chipmaking tools has climbed to roughly 1.9 times what it projected in December 2025, according to Bloomberg. The surge reflects overwhelming demand from AI developers and the global data center buildout.Bloomberg

TSMC has raised its 2026 capital expenditure budget to between $60 billion and $64 billion, up from earlier guidance of $52 billion to $56 billion, with 70% to 80% earmarked for advanced process nodes. The company is targeting 180,000 wafers per month on its 3nm process by year-end.kucoin+1

ASML is already converting that demand into results. The company reported second-quarter revenue of €9.33 billion and net income of €2.92 billion, a 31.3% margin. Management guided full-year 2026 sales of €43 billion to €45 billion, roughly 35% above 2025 levels, and plans to lift low-NA EUV production capacity by about 30% for 2027.tradingview

ASML Expands in Japan

Separately, ASML Japan President Shojiro Fujiwara said Thursday that the company plans to grow its Japanese workforce from 500 to around 700 by 2030, a 40% increase, to support the country's push into advanced chipmaking. ASML has already doubled staffing at its Chitose office near Rapidus's fabrication facility from about 25 employees when it opened in 2024 to around 50.taiwannews+1

ASML is also considering expanding its presence in Kumamoto prefecture, where TSMC operates one fab and is building a second now set to produce 3nm chips. TSMC and Sony recently announced a $4.69 billion joint venture for next-generation image sensors targeting volume production in 2029. ASML's lithography system sales in Japan climbed roughly 40% in 2025 to €1.2 billion.trendforce

Premium Valuation Raises the Stakes

The stock's advance leaves ASML trading well above its estimated intrinsic value, suggesting the market is pricing in near-flawless execution. TSMC's spending boom strengthens the order outlook, but supplier bottlenecks, long installation cycles, and customer-site delays could test that premium. As Rapidus pushes ahead with plans for Japan's first mass production of 2nm chips in fiscal 2027 and TSMC expands aggressively across multiple geographies, ASML's machines remain the chokepoint through which much of the world's most advanced semiconductor production must pass.tradingview