AI chip production capacity anxiety eased! ASML's core supplier Zeiss: Confident in meeting demand, starts headquarters expansion and new factory construction

According to Zhitong Finance APP, Frank Rohmund, head of the semiconductor manufacturing technology division at ZEISS, stated in an interview that the company is confident in meeting the soaring demand and has already launched "real and long-term" capacity expansion projects. This expansion not only concerns ZEISS's own performance growth but also directly determines the upper limit of production capacity for the world's most advanced chip manufacturing. Germany's ZEISS Group, which provides the core optical systems for ASML (ASML.US)—the world’s only manufacturer of extreme ultraviolet (EUV) lithography machines—is responding decisively to widespread market concerns about AI chip supply chain bottlenecks with a bold capacity expansion and a 15-year technology roadmap.

Capacity Expansion: From Oberkochen to Worldwide Layout, Building the Foundation for “Long-term Demand”

In the face of surging demand, investors have been widely concerned that ASML and its supply chain (especially ZEISS) might drag down the entire semiconductor industry due to production bottlenecks. In response, Rohmund made it clear that the company is confident in overcoming these challenges.

Amid the exponential growth in AI chip demand, ZEISS's semiconductor division has taken the lead in launching substantial capacity expansion. According to Rohmund, ZEISS has expanded its headquarters in Oberkochen, Germany, aimed at optimizing existing spaces and increasing production scale. At the same time, the division is building an entirely new factory at another ZEISS site and has explicitly stated that further expansion is possible if needed. Rohmund emphasized, "These are the true, long-term projects in terms of capacity expansion."

This expansion directly addresses investors’ core concerns. Previously, the market worried that as chip makers like TSMC, Intel, Samsung, and Micron raced to build chip production facilities, ASML and its key suppliers (such as ZEISS) might not be able to keep up. ZEISS’s proactive capacity expansion aims to eliminate the risk of this supply chain bottleneck.

Meanwhile, ASML itself is also rapidly expanding its capacity at a pace rarely seen in the semiconductor equipment industry. According to reports from April, ASML expects to mass-produce at least 60 EUV lithography machines in 2026, a significant increase from 2025, with the next stage raising annual capacity further to at least 80 units. To relieve capacity bottlenecks, ASML has expanded clean-room production capacity in the US, Germany, and Korea, and plans to build a new industrial park near its headquarters in the Netherlands. As ASML’s exclusive optical component partner, ZEISS is a crucial link in this global capacity expansion network.

This approach is closely synchronized with ASML’s expansion plans. In July of this year, ASML announced plans to sharply increase the capacity of its EUV lithography machines to meet a large backlog of orders by 2028. The two companies’ expansion paces are highly consistent, demonstrating strong confidence in long-term AI-driven demand.

Technology Depth: From High NA to Hyper NA, Jointly Drawing the EUV Roadmap

ZEISS and ASML’s collaboration goes far beyond meeting current demand—the two have set a technology roadmap for the next decade. At present, ASML’s most advanced lithography machines are equipped with High NA (0.55NA) optical systems, offering a resolution of 8nm. As early as June 2025, ASML Senior Vice President of Technology, Jos Benschop, announced that ASML and ZEISS have jointly begun developing Hyper NA lithography machines capable of achieving 5nm resolution in a single exposure. The project aims to further increase the numerical aperture (NA) to 0.7 or higher, to meet industry needs for 2035 and beyond.

Rohmund revealed that both sides have worked out a joint plan extending their goals to "around 2040." This means that, for the foreseeable future, ZEISS’s optical systems will continue to set the ceiling for chip manufacturing precision.

Financial Engine: Semiconductor Division Becomes the Core Driver of Group Growth

EUV lithography machines are hailed as money printers for modern semiconductor manufacturing, while ZEISS’s ultra-smooth mirrors are the “eyes” of these machines. The manufacturing precision of these mirrors reaches the atomic level. According to ZEISS, if their tilt angle is used to "redirect a laser beam and aim at the Moon, it could even hit a ping-pong ball on the lunar surface." It is precisely this cutting-edge optical technology that enables ZEISS components to play a key role in about 80% of global chip production.

The strategic significance of ZEISS’s semiconductor division is vividly reflected in its financial data. As the demand for computing power driven by AI model training and inference surges, chip manufacturers are rushing to purchase EUV equipment, directly boosting ZEISS’s semiconductor orders and revenues. The division’s strong performance has made it the biggest contributor to ZEISS Group’s nearly 12 billion euros in total revenue. According to German media reports, nearly one-third of ZEISS’s annual revenue comes from the semiconductor business.

Looking ahead, Rohmund expects the company’s performance will see "significant growth" this year, thanks to investments from large-scale data center operators. In ZEISS’s new five-year strategy, an AI-driven digital transformation and data intelligence have been positioned as core themes.

Despite the bright outlook, ZEISS—which has focused on optics for nearly 180 years—remains cautious, as is typical of German enterprises; the cyclical nature of the semiconductor industry cannot be ignored. Physicist Rohmund, who has worked at ZEISS for nearly 25 years, remains clear-headed about this. He reminded: "Sooner or later, some form of adjustment is likely to occur." He added: "We are Germans. We are always very cautious and never easily optimistic."