ASML says Samsung, SK Hynix drove 43% of equipment sales in Q2 as memory 'perfect storm' builds

"A perfect storm is forming for ASML's DRAM business this year and for years to come, as surging memory chip demand combines with rising process complexity."

ASML CEO Christophe Fouquet made the remarks Wednesday during a second-quarter earnings conference call, saying explosive growth in memory chip demand is creating a new engine of growth for the Dutch equipment maker. Korea accounted for 43% of ASML's equipment sales in the quarter, as Samsung Electronics and SK Hynix pour massive capital expenditure into expanding supply — a trend analysts say points to solid demand through at least 2028.

"To address memory supply shortages, customers are adding meaningful capacity this year and signaling further investment ahead," Fouquet said. "We expect ASML's memory-related equipment sales to grow more than 75% year-on-year in 2026."

ASML posted net sales of 9.3 billion euros ($10.7 billion) and net profit of 2.9 billion euros in the second quarter, up 21% and 27%, respectively, from 7.7 billion euros in sales and 2.3 billion euros in net profit a year earlier. Earnings also improved from the first quarter, when net sales were 8.8 billion won and net profit was 275.7 billion won.

Korea's share of equipment revenue stood out. ASML separately discloses net system sales and installed base management sales; net system sales in the second quarter totaled $6.6 billion, of which $2.8 billion, or 43%, came from Korea — surpassing Taiwan (30%) and China (14%) to make Korea the top revenue source.

The trend has held since the start of the year. Korea also accounted for 45% of net system sales in the first quarter, when total net system sales reached $6.3 billion, putting Korea's contribution at roughly $2.8 billion — nearly identical to the second-quarter figure.

Until last year, equipment sales were more evenly distributed among Korea, China and Taiwan. Korea's share stood at 25% in 2025, second only to China at 33%, and at 21% in 2024, again behind China at 41%. Taiwan's share was 21% in 2025 and 11% in 2024.

The surge in Korean sales is largely driven by memory chip capital expenditure. Demand for EUV lithography tools has risen sharply as chipmakers apply finer process nodes across products ranging from HBM to commodity DRAM.

"HBM requires more wafers by nature of its process, and mainstream DRAM at the latest nodes also uses more layers of EUV and immersion lithography," Fouquet said. "The 1c node, which will become the leading node going forward, and the current 1b node both use more EUV layers." Circuit miniaturization will inevitably drive greater demand for ASML tools, he added.

SK Hynix's recent NASDAQ listing of American depositary receipts made its large-scale equipment purchase plans public. The company said it would use some of the $26.5 billion raised through the ADR offering to buy next-generation EUV lithography tools from ASML, with total spending of 12 trillion won planned through December next year.

ASML is expanding its own production capacity to keep pace with customer demand. The company plans to increase its low-NA EUV output — currently around 65 units per year in 2026 — by 30% in 2027, and is considering a further 30% expansion in 2028. It also plans to raise its DUV immersion lithography capacity, currently around 130 units in 2026, by 30%.