ASML Sales to China Doubled in Third Quarter
The semiconductor equipment manufacturer raised its annual revenue guidance to 44 billion euros amid surging demand.
Updated on Oct. 14, 2026 in Semiconductors
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ASML reported a 109 percent increase in sales to China during the third quarter of 2026 compared to the prior quarter. China now accounts for 23 percent of the company's total machine sales.
Why it matters
The jump in regional sales has prompted ASML to increase its full-year 2026 revenue guidance to 44 billion euros. The company projects overall revenue growth of 36 percent for the year.
ASML expects a 56 percent gross margin for the year, supported by increased capacity for low-NA extreme ultraviolet lithography systems. The firm forecasts 45 percent growth in EUV machine sales and 50 percent growth in its installed base business throughout 2026.
The players
ASML
A Netherlands-based manufacturer of lithography systems essential for producing high-end semiconductor chips.
Rob Jetten
The Prime Minister of the Netherlands who is scheduled for a diplomatic visit to China in the spring of 2027.
The details
The sales growth is driven by demand for advanced EUV systems, which use light with a 13.5-nanometer wavelength to etch complex circuitry onto silicon wafers. ASML has increased production capacity for these low-NA (numerical aperture) systems to meet global demand. These machines are the primary tools used to produce high-performance logic and memory chips.
Timeline
Q2 2026: China accounted for 14 percent of total ASML machine sales.
Q3 2026: Sales to China rose by 109 percent compared to the previous quarter.
October 2026: ASML released its quarterly financial results.
Spring 2027: Prime Minister Rob Jetten is scheduled to visit China.
The Tech Race
This performance highlights the ongoing strategic tension surrounding U.S. export restrictions on advanced chip-making equipment. ASML continues to balance high demand from the Chinese market against broader international regulatory pressures.
The firm's guidance shift suggests a high volume of hardware installation for semiconductor manufacturers through the end of 2026. This capacity expansion potentially eases supply constraints for advanced logic and memory chips used in electronics.
The takeaway
The company remains on a growth trajectory with an expected 36 percent revenue increase for 2026. Analysts should monitor the Q4 revenue figures to see if the firm meets its 14.2 billion to 15.2 billion euro goal.
What happens next
ASML expects fourth quarter 2026 revenue to land between 14.2 billion and 15.2 billion euros.
Further reading
For more on the current manufacturing landscape, explore the latest trends in Semiconductors.
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