ASML Factors Elon Musk's Terafab into 2027-2028 Production Guidance

ASML, the world's leading supplier of semiconductor manufacturing equipment, has incorporated anticipated demand from Elon Musk’s planned Terafab chip facility into its capacity expansion plans for 2027 and 2028, the company's chief financial officer confirmed on Wednesday.

The disclosure, made alongside ASML's second-quarter earnings, provides the first official confirmation that the Dutch technology giant is factoring the high-profile U.S. project into its long-term production and financial forecasts.

Terafab Demand Confirmed

Speaking on an investor call, CFO Roger Dassen stated that ASML is in close contact with its clients regarding their future production roadmaps. He explicitly included the Texas-based project in the company's outlook.

"We’re in dialogue with all our customers and we know ... what their building plans are," Dassen said, according to a Reuters report. "Terafab is also part of those plans."

Strong Order Book for EUV Systems

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Demand for ASML's cutting-edge equipment remains robust, signaling strong capital investment from the world's top chipmakers. Dassen provided several key updates on the company's order book:

• The production capacity for its extreme ultraviolet (EUV) lithography systems is close to fully booked for 2027.
• A substantial number of orders for 2028 have already been secured.
• Shipments of the company's next-generation High-NA EUV systems are still in the "low-single digits," indicating the technology is in its early commercial rollout.

Market Context

Addressing the broader semiconductor landscape, Dassen commented on the dynamics of global chip production. He noted that if chipmaking capacity cannot be expanded in China, that production would likely shift to other regions.

This is because the underlying global demand for semiconductors remains unchanged, suggesting that production will find a home elsewhere to meet persistent market needs, according to the report.