Surging chipmaker demand tests Carl Zeiss SMT’s ability to convert precision optics investments into qualified output for ASML’s EUV systems
ASML’s ambitions to scale up its lithography equipment output hinge significantly on Carl Zeiss SMT’s capacity to boost its supply of qualified precision optics, according to a recent report by EE Times.
Surging customer demand has outpaced ASML’s current production targets for 2027 and 2028. Consequently, the firm is exploring further manufacturing capacity for 2028, building on expansion plans announced just three months ago.
The strategy outlined in July targeted a 30 per cent surge in Low-NA extreme ultraviolet (EUV) capacity by 2027, rising from roughly 65 systems in 2026. Simultaneously, ASML announced a 30 per cent expansion in deep ultraviolet (DUV) immersion capacity from a baseline of around 130 systems.
While additional 30 per cent increases across both product lines were originally slated for 2028, market demand has accelerated beyond expectations, with several clients already seeking to secure orders for 2029 and 2030.
This manufacturing bottleneck extends deep into ASML’s supply chain—most notably to Carl Zeiss SMT, the creator of the vital optical assemblies powering ASML’s lithography tools. Zeiss’s ability to ramp up qualified production will dictate how rapidly ASML can accommodate these heightened forecasts. Indeed, ASML’s 2025 annual report explicitly singled out Zeiss’s capacity limits as a primary constraint on system manufacturing. The two companies share a decades-long partnership; Zeiss manufactures specialised optical columns exclusively for ASML, which in turn retains an indirect minority stake in Carl Zeiss SMT to ensure tightly aligned development and capital investments.
Fabricating EUV optics demands extraordinarily delicate precision engineering, specialized coatings, rigorous metrology, and complex integration. Crucially, as production ramps up, metrology capacity becomes just as pivotal as fabrication itself. To address these bottlenecks, Zeiss has been bolstering its German manufacturing footprint.
In July 2026, Zeiss disclosed plans for roughly 25,000 square metres of new operational and administrative space at its Oberkochen headquarters—a project under construction since May 2022. The opening of a new office building in July represented an initial milestone, with further facilities set to come online in phases. Additionally, Zeiss is erecting a multifunctional factory in Wetzlar.
However, these long-lead-time infrastructure projects require intricate equipment installation, calibration, and process stabilization before reaching full operating rates. Notably, while the July update detailed physical expansion, it did not quantify the precise increase in qualified EUV optical yield.
Concurrently, both partners are managing the transition to High-NA EUV technology, which increases the numerical aperture from 0.33 to 0.55 through a vastly more intricate optical setup. Zeiss’s High-NA projection optics comprise over 40,000 individual components and weigh nearly 12 tonnes. Intel Foundry has already integrated High-NA EUV into selective production runs; by September, Intel and ASML had processed over one million wafers across tool qualification, development, and manufacturing routines, establishing a crucial operational benchmark for wider deployment.
Navigating this transition requires managing distinct production and qualification ramps for High-NA and established Low-NA systems simultaneously. Because the two generations rely on fundamentally different optical specifications, their delivery timelines and manufacturing capacities must be managed independently.
Ultimately, ASML’s updated growth projections put the spotlight squarely on its supply chain. The speed at which future EUV systems reach global chipmakers will largely depend on how swiftly Zeiss can convert its ongoing capital investments into fully qualified optical output.
