ASML’s Memory Pivot Drives Record Sales as Indian Expansion Targets Next Growth Frontier
Published on 05/17/2026 at 13:53 | Redaktion boerse-global.de
The semiconductor equipment giant has crossed a strategic milestone: memory chips now account for 51 percent of new system sales, up from just 30 percent in the prior quarter and overtaking logic chips for the first time. SK Hynix is driving much of this shift, committing roughly $8 billion in advanced ASML tools by 2027 as a global memory shortage pushes manufacturers to scale up. The trend helped ASML lift its full-year revenue forecast to as much as €40 billion, with second-quarter revenues expected to average €8.7 billion.
Yet the company is also planting a flag in entirely new territory. Last week, Tata Electronics and ASML formalised a partnership for India’s first front-end chip fab in Dholera, Gujarat, witnessed by Prime Minister Narendra Modi and Dutch Prime Minister Rob Jetten. ASML will equip the 300-millimetre facility with its full lithography portfolio, including EUV and High-NA machines, and help train local talent. The project carries an $11 billion price tag and targets automotive, mobile and AI chip production for global clients. CEO Christophe Fouquet stressed the aim of building long-term relationships in the region, but the risks are considerable: India lacks a mature supply chain, world-class packaging capabilities and experience in high-volume manufacturing, raising doubts about yield and process stability.
Geopolitical headwinds remain a counterweight to those ambitions. China’s share of ASML’s revenue dropped from 36 to 19 percent in the first quarter as export restrictions bite, and US lawmakers are now debating further limits on older machine generations. All the same, analysts are largely undeterred. JP Morgan reiterated its buy rating on Friday, citing strong expected earnings growth, while Bernstein, UBS and Barclays maintain their own positive stances.
Should investors sell immediately? Or is it worth buying Asml?
The stock closed at €1,295.20 on Friday, shedding roughly 5 percent in a broad market pullback that also saw the S&P 500 fall 1.24 percent. That dip came just days after the shares hit a fresh record high, and the year-to-date gain still stands at a robust 31 percent. No company-specific catalysts are expected this week, leaving the near-term focus on customer investment plans from TSMC and Intel, which directly determine ASML’s order book.
ASML now finds itself juggling two distinct growth engines: the surge in memory-driven demand that is supporting near-term revenues, and the long-shot Indian bet that could open a new frontier if operational hurdles are overcome. Both carry execution risks, but for now the market is betting that the memory boom — and the strategic imperative to supply it — will keep the lithography champion on a rising trajectory.
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