ASML Targets Advanced Packaging Tools to Broaden Chipmaking Portfolio
In Focus
- Advanced packaging equipment integrates specialized chips
- ASML leads in production of extreme ultraviolet (EUV) chipmaking equipment
- The company is preparing its next-generation chipmaking equipment for production
ASML is planning to introduce new chipmaking equipment to its lineup. According to Reuters, ASML’s future chipmaking tools are expected to help the Dutch company to capitalize on the growing AI chip market.
ASML is the only firm that makes extreme ultraviolet (EUV) equipment. Entities like Taiwan Semiconductor Manufacturing Company (TSMC) and Intel need the equipment to manufacture the most advanced AI chips.
ASML Targets Growth Beyond EUV
ASML has invested billions of dollars in developing its EUV systems. The company is preparing its next-generation tools for production as demand for AI chips increases. The company is also exploring a possible third-generation innovation.
Even with this progress, ASML is seeking to grow its chipmaking technology beyond EUV. The Dutch company plans to venture into advanced packaging equipment. This process involves bonding and integrating multiple specialized GPUs into a single system.
Advanced packaging has become a critical enabler for AI processors and the high-performance memory that supports them. As ASML looks beyond its next-generation chip technology, it plans to embed AI across new ventures and its established operations.
“We look, not just for the next five years, we look at the next 10, maybe 15 years. We look at what potential directions the industry could take, and what would it require in terms of packaging, bonding,” ASML Chief Technology Officer Marco Pieters noted.
EUV machines are used in lithography, which involves the use of light to print intricate patterns onto silicon wafers. ASML’s AI chip manufacturing plans include increasing the size of chips it can print, from the current stamp-sized limit.
The Opportunity in Advanced Packaging
Increasingly, chipmakers are building chips in layers connected by nanometer-scale links. Since each chip is limited to roughly the size of a postage stamp, designers stack them or place them side by side.
This increases the speed required for complex AI tasks, including large models and chatbots like OpenAI’s ChatGPT. The precision needed to build such chips has transformed packaging from a low-margin, high-volume task to a more profitable part of chipmaking for companies like ASML. TSMC relied on advanced packaging technology to assemble Nvidia’s most cutting-edge AI processors.
ASML Plans Expansion Amid Major Changes
ASML outlined its chip industry plans soon after it made a series of internal changes. Pieters took over as ASML’s Chief Technology Officer in October 2025. The Dutch company also reorganized its tech unit in January 2026 to prioritize engineering roles.
The company’s EUV leadership is reflected in its stock performance. According to Pieters, ASML engineers will use AI to speed up the company’s machine control software and chip inspection tools. Currently, the ASML stock trades at about 40 times the projected earnings, compared with roughly 22 times for NVIDIA.
With a market valuation of about $560 billion, ASML’s stock has gained over 30% this year. In January 2026, ASML’s production capacity reached peak levels following high demand for AI accelerators, cloud GPUs, and high-performance processors from NVIDIA.
