Yahoo Finance Analysis: ASML's 2027 EUV orders are nearing full capacity, with plans to expand production by 30% in 2028; TSMC raises its 2026 capital budget to $60-64 billion, 2nm mass production has begun.

Yahoo Finance analysis indicates that semiconductor equipment manufacturer ASML and foundry TSMC both reported strong second-quarter earnings. ASML, due to its monopolistic position in EUV (extreme ultraviolet lithography) equipment, has its EUV orders for 2027 nearly at full capacity and plans to expand production capacity by another 30% in 2028. TSMC, on the other hand, raised its 2026 capital budget to $60 billion-$64 billion, announced an additional $100 billion investment in Arizona, and stated that its 2nm process has entered commercial production.

ASML's revenue increased by 21.3% year-over-year to $10.65 billion, with its operating profit margin expanding to 37.1%, primarily driven by strong customer demand for existing fab upgrades. TSMC's revenue grew by 36.0% year-over-year to $40.2 billion, with a gross margin of 67.7%, of which its High-Performance Computing (HPC) business contributed 66% of revenue. The analysis suggests that ASML's structural advantage lies in the fact that regardless of whether TSMC, Intel, or Samsung wins the competition in wafer manufacturing, they will all need to purchase its equipment.