ASML’s business model combines four distinct revenue streams: machine sales from $5M to $400M+, service contracts at $10-15M annually per machine, upgrade revenue from existing customers, and geographic expansion driving new fab construction globally.
The core business spans an extraordinary price range:
DUV systems: $5-90 million – 374 machines sold in 2024, 60% of unit volume
EUV systems: $183-220 million – 44 machines sold in 2024, 38% of system revenue
High NA EUV: $350-400 million – target 20 units annually by 2028
Hyper NA EUV: $724 million+ projected for 2030+
Each technology generation roughly doubles ASPs while delivering proportional value. Volume declines as price rises, but revenue concentrates at advanced nodes.
Service Contracts
Beyond the machine price tag, customers pay $10-15M annually for maintenance, upgrades, and software optimization. ASML deploys 50-60 engineers permanently at customer sites and guarantees greater than 90% machine availability.
Each machine generates recurring revenue for decades. Installed tools become multi-decade recurring revenue assets. On-site engineers maximize uptime and yield, creating value that justifies ongoing service fees.
Upgrade Revenue
Existing customers upgrading to newer generation machines represent a reliable revenue stream. The technology roadmap – DUV to EUV to High NA to Hyper NA – creates natural upgrade cycles as customers need access to smaller nodes.
Power efficiency improvements now justify upgrades even without resolution improvements. A factory running more power-efficient equipment has lower operating costs per wafer.
Geographic Expansion
Global fab build-outs diversify revenue geographically. As Western nations invest in domestic semiconductor capacity through programs like the US CHIPS Act and European initiatives, ASML gains from fab construction in multiple regions.
The Financial Result
This combined model delivers: 32.5 billion euros projected 2025 revenue, 9.6 billion euros net profit (+27% YoY), and market capitalization around $430 billion – making ASML Europe’s most valuable company.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
