ASML Faces Internal and External Challenges as Top EUV Customer Backs Away from $400M Systems

ASML is reportedly planning to cut over 1,700 positions, mostly in management. The move comes as the company faces multiple headwinds in its core lithography business.

Layoffs and customer rejection hit ASML.

The High NA EUV lithography system, which costs over $400 million per unit, has lost its biggest customer. TSMC has stated it will not purchase these systems. Meanwhile, Chinese semiconductor companies have largely completed their DUV orders and may not need further purchases for years.

Potential US sanctions may prohibit ASML from providing after-sale service to Chinese customers. Future growth may rely on memory chip expansion, but memory makers are cautious about increasing capacity.

ASML has not officially confirmed the layoff plan. The company's challenges highlight the shifting dynamics in the semiconductor equipment market.