We talked about that chip gross sales may attain as much as 430 billion models in complete this 12 months. Semiconductor producers, alternatively, are aggressively increasing their capacities and continuously buying new tools.

Demand for lithography instruments is stronger than ever. ASML, the world’s largest producer, warned that solely 60% of orders for deep ultraviolet (DUV) lithography machines could be fulfilled. ASML CEO Peter Wennink mentioned on the corporate’s quarterly convention name with analystsdollarser and traders:

Though the present macro surroundings creates uncertainty, we consider key development drivers stay intact. We proceed to see unprecedented buyer demand throughout the complete vary of market segments, from each superior and mature operations. We’re working at most capability and count on demand to exceed provide subsequent 12 months. We are able to solely ship 60% of DUV demand this 12 months.

ASML plans to ship 55 excessive ultraviolet (EUV) scanners and roughly 240 DUV scanners this 12 months (about 14 EUV and 60 DUV machines per quarter) is planning. However, the backlog for DUV scanners is presently over 500 models. By the way in which, the product lead time for a brand new DUV machine is about two years.

The Dutch firm is working to extend its manufacturing capability to 90 EUV 0.33 NA methods and 600 DUV methods by 2025. It additionally plans to offer about 20 EUV Excessive-NA (0.55 NA) system capability within the medium time period.

With out sufficient lithography scanners (and thus manufacturing capability), chipmakers will proceed to under-supply within the coming quarters. ASML additionally reported web gross sales of €3.5 billion and web earnings of €695 million for the primary quarter of 2022.