ASML shares shot up just after TSMC announced a better than expected outlook for 2026.
Dutch semiconductor equipment manufacturer ASML Holdings NV has become the third European company to pass $500bn in market valuation.
The major player in the global chipmaking ecosystem follows Danish drug maker Novo Nordisk and France-based Dior-parent LVMH in reaching the milestone.
Shares in ASML rose as much as 7.6pc since yesterday (15 January), settling at around €1,150 per share at the time of publication. This took ASML’s market capitalisation to more than €450bn – or more than $500bn.
ASML shares shot up just after its customer Taiwan Semiconductor Manufacturing Corporation (TSMC) – the world’s largest and most advanced dedicated independent semiconductor foundry – announced a better than expected outlook for 2026, with a planned capital budget of up to $56bn for the year.
TSMC’s fourth quarter revenue rose 25.5pc year on year, hitting $33.73bn. 77pc of its sales in the quarter were made up of 7-nanometer and more advanced chip technologies, the company said. Continuing in the same trajectory, TSMC expects a Q1 2026 revenue of up to $35.8bn.
Also yesterday, US and Taiwan agreed to a major deal which would see Taiwanese chip manufacturers making new investments in the US totalling to at least $250bn. Sources tell news outlets that TSMC plans an additional four chip fabs in the country, on top of the six already planned, requiring an additional $100bn in capital.
ASML and TSMC both play an undeniably key role in the global chipmaking capability. The Dutch company holds an effective monopoly on advanced lithography machines required to make advanced chips, while TSMC holds around 70pc of the semiconductor market share, supplying its products to the likes of Apple, Nvidia and AMD.
JLL anticipates that between 2026 and 2030, nearly 100GW worth of data centres will be added, doubling global capacity. While Goldman Sachs projects that AI’s slice in the overall data centre market will double to 30pc over the next two years. Both could place strong demand for TSMC’s chips.
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