ASML Underpins the Semiconductor Foundation Behind Nvidia AI Expansion
Nvidia has become well-known around the world because its chips power AI infrastructure all over the world. However, this success depends on manufacturing technologies that Nvidia does not control or make itself. ASML, the Dutch semiconductor equipment leader, is at the center of that important dependency.
ASML makes the lithography systems that are needed to print very fine patterns on silicon wafers. These machines make it possible to make the most advanced semiconductors that AI accelerators use. Nvidia’s chip designs could not be made without ASML’s tools.
Source: Investopedia/Website
ASML Holds Exclusive Control Over EUV Lithography Technology
ASML is the only company in the world that makes extreme ultraviolet lithography machines. EUV systems are necessary for making the smallest and most advanced semiconductor nodes. No other supplier right now can match the commercial EUV capabilities of this one.
The company has about 90% of the larger lithography equipment market under its control. Analysts think that ASML will be the only company that makes next-generation EUV technologies. This dominance creates a structural bottleneck that affects the whole semiconductor industry.
EUV Machines Enable Advanced AI Chips Like Nvidia Blackwell
EUV lithography lets chipmakers make processors that are faster, denser, and use less energy. These traits are very important for AI workloads that need a lot of parallel computation. Nvidia’s newest AI chips need manufacturing processes that use EUV.
ASML makes low-numerical-aperture EUV systems for AI chips that are currently on the market. It also makes high numerical aperture EUV tools for research on the next generation of semiconductors. Both systems are directly in line with Nvidia’s AI roadmap.
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Complex Physics Make ASML Technology Nearly Impossible to Replicate
ASML’s EUV machines need very high levels of physical accuracy and engineering skill. Strong lasers hit drops of molten tin, which makes plasma that gives off EUV light. Then, very precise mirrors direct and focus this light onto silicon wafers.
The process takes place in a vacuum where nanometer accuracy is needed. This ability is based on years of research funding. Other companies don’t have the same level of expertise, capital commitment, or intellectual property.
Competitors Trail Far Behind ASML Lithography Capabilities
Companies like Nikon and Canon make lithography tools for older semiconductor nodes. But they are still far behind in advanced process technology. Compared to ASML’s research spending over many decades, their investments are small.
According to industry experts, it is almost impossible to catch up with ASML these days. As ASML improves EUV performance, the gap in technology keeps getting bigger. This long-standing lead strengthens ASML’s strategic position in the global chipmaking industry.
Foundries Rely on ASML to Manufacture Nvidia Designed Chips
Chip foundries buy ASML tools to make designs for companies like Nvidia. TSMC makes the most advanced AI processors with EUV machines. These foundries are the main places where semiconductors are made.
ASML systems are needed by foundries to make AI chips that meet design standards. EUV availability directly affects how much can be made and how quickly technology can advance. So, ASML indirectly controls the supply of AI hardware around the world.
ASML Financial Surge Reflects Critical Position in AI Boom
In late 2025, ASML’s order backlog grew much more than analysts had expected. During this time, EUV systems brought in the most money from bookings. High NA and low NA machines brought in $ billions in sales.
The price of the company’s stock went up a lot between 2020 and 2026. Investors know that ASML is essential for the growth of artificial intelligence. Its value shows that it plays a structural role that few companies ever reach.
