ASML reports 1,700 layoffs as large orders outweigh large orders as AI drives demand for chipmakers

issued Wednesday, January 28, 2026 · 04:05 PM

[AMSTERDAM] ASML reported Wednesday (January 28) that fourth-quarter orders exceeded expectations, with the world’s largest computer chip equipment supplier winning more orders as companies ramp up investment in AI chip manufacturing capacity.

Separately, Europe’s largest company by market capitalization also announced 1,700 layoffs, representing 3.8% of its workforce. Most of them are in the Netherlands and the United States, mainly at the executive level.

Chief Financial Officer Roger Dassen said on a conference call that the shakeout is the largest the company has seen in absolute numbers, following a long period of expansion in the 2010s and 2020s.

Bookings for the industry’s hottest quarter were 13.2 billion euros (S$20 billion) compared to 5.4 billion euros in the previous quarter. This compared with analysts’ expectations of 6.32 billion euros, according to researcher Visible Alpha.

“In recent months, many of our customers have shared a significantly more positive assessment of the medium-term market situation, mainly based on more solid expectations about the sustainability of AI-related demand,” ASML CEO Christophe Fouquet said in a statement.

Orders exceed expectations due to surge in demand for AI chips

The increase in orders comes as some of ASML’s chipmaker customers are increasing their investment plans due to demand for AI logic and memory chips needed by cloud computing giants such as Microsoft, Amazon and Alphabet’s Google.

“Overall, orders in the fourth quarter and outlook for 2026 are strong, driven by AI demand for EUV in both logic and DRAM,” Mizuho analyst Kevin Wang said in an email.

The Dutch company also raised its outlook for 2026.

Full-year sales are expected to be between 34 billion and 39 billion euros, compared with analysts’ expectations of 35 billion euros, according to LSEG data. The company had previously expected sales in 2025 to be flat to 32.7 billion euros, up from a year earlier.

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“We expect 2026 to be another year of growth for ASML’s business,” Fouquet said.

Analysts had expected the Dutch giant to benefit from strong demand from top customers such as TSMC and Samsung, as semiconductor makers ramp up capital spending to expand capacity for AI-related chips as global supplies of memory and AI accelerator chips tighten.

ASML has maintained its long-term guidance through 2030, Fouquet said in an internal interview posted on its site, saying it expects sales in 2030 to reach between 44 billion and 60 billion euros and gross profit margins between 56 and 60 percent. Reuters