The Netherlands is the only country that manufactures photolithography machines

 

A view of chip manufacturing equipment at ASML 

What's the Dutch secret behind Nvidia's AI boom?

Nvidia has risen to become the world's most valuable company, driven by the huge demand for its advanced chips that power the artificial intelligence revolution.

But this remarkable success wouldn't have been possible without a lesser-known European company, but one that is crucial to the semiconductor industry: the Dutch company ASML. ASML is one of the most valuable technology companies in Europe, specializing in photolithography machines used to etch the most intricate patterns onto silicon wafers—a fundamental step in the production of advanced electronic chips.

The Dutch company is unique in that it is the only one in the world that manufactures printing machines using extreme ultraviolet (EUV) light, essential for producing the most sophisticated chips. ASML controls approximately 90% of the global photolithography market, according to a report published by CNBC. 

Market analysts believe ASML's dominance is poised to expand. Didier Schema, an analyst at Bank of America, predicted that ASML would become a virtual monopoly in the next generation of EUV technologies, asserting that this technology would underpin the most significant technological shifts of the decade. 

These predictions followed the release of ASML's earnings report, which showed that new orders in the fourth quarter of 2025 more than doubled analysts' expectations.

Catching Up with ASML Is Nearly Impossible

Javier Correonero, an equity analyst at Morningstar, stated that photolithography is the fundamental building block of any electronic chip, noting that ASML's machines have been involved in manufacturing approximately 99% of the world's semiconductors. He added that EUV technologies, in particular, are the cornerstone of building the current and future architecture of artificial intelligence.

ASML produces two types of these machines:

Low Numerical Aperture EUV, used in manufacturing the current generation of AI chips, such as Nvidia's Blackwell chips. High Numerical Aperture (HNA) EUV, a more advanced technology, is currently being used in research and development labs to produce the next generation of chips.

These systems rely on firing powerful laser beams at droplets of molten tin within a vacuum, generating a plasma that emits EUV light. This light is then directed through ultra-precise mirrors to etch chip designs onto silicon wafers. These machines are sold to chip manufacturers like Taiwan's TSMC, which in turn collaborates with chip design companies, most notably Nvidia.

Corionero explained that competitors like Japan's Nikon and Canon are still far behind in this level of development, stating that the investment and technological gap built by ASML over three decades makes catching up virtually impossible.

Growth Prospects

Company data showed that EUV systems accounted for the largest share of new order value, contributing approximately €7.4 billion out of a total of €13.2 billion in the fourth quarter of 2025. Throughout the year, ASML sold around 48 EUV systems, generating revenues of €11.6 billion.

Although the company does not officially announce pricing for its devices, analysts estimate the price of the advanced High NA EUV system to be between €320 million and €400 million, while the Low NA EUV system is priced at around €220 million.

Companies such as TSMC, Intel, and Samsung are currently conducting laboratory trials of High NA EUV systems, with expectations of mass commercial production between 2027 and 2028, with Intel being the first to adopt them.