ASML and TSMC strength

ASML raised its 2026 sales outlook on April 15 after reporting first-quarter net sales of €8.8 billion, adding fresh evidence that advanced chipmaking demand is still rising. (asml.com) The Dutch company now expects 2026 net sales of €36 billion to €40 billion, up from the €34 billion to €39 billion range it gave in January. First-quarter gross margin was 53.0% and net income was €2.8 billion. (asml.com 1) (asml.com 2) ASML sells the lithography machines that print chip circuits onto silicon, and it is the only supplier of extreme ultraviolet systems used for the most advanced chips. Reuters said the company linked its stronger outlook to artificial intelligence spending and customers’ 2026 capacity expansion plans. (reuters.com) (asml.com) Taiwan Semiconductor Manufacturing Co. gave a matching signal five days earlier, reporting January-through-March 2026 revenue of NT$1.134 trillion, up 35.1% from a year earlier. March revenue alone rose 45.2% to NT$415.19 billion. (tsmc.com) That matters because Taiwan Semiconductor Manufacturing Co. is the biggest contract chipmaker, and ASML supplies the tools needed to expand leading-edge output. When both companies show stronger numbers in the same week, investors get a read on both factory demand and chip demand at once. (cnbc.com) (reuters.com) Taiwan Semiconductor Manufacturing Co. has not yet reported full first-quarter earnings, but Reuters said analysts expect net profit to rise about 50% to T$354.6 billion when it reports on April 16, 2026. That would mark a fourth straight quarter of record profit. (reuters.com) The race now centers on 2-nanometer production, the next manufacturing step after 3-nanometer chips. Taiwan Semiconductor Manufacturing Co. says its N2 process started volume production in the fourth quarter of 2025, and its N2P version is scheduled for volume production in the second half of 2026. (tsmc.com) ASML’s numbers also showed where the money is coming from inside its business. Installed Base Management sales, which include service and upgrades on machines already in the field, rose to €2.488 billion in the first quarter from €2.134 billion in the fourth quarter of 2025. (asml.com 1) (asml.com 2) There are still constraints around export controls and how fast new fabs can be equipped, and CNBC said ASML remains exposed to restrictions affecting China. But on April 15 the company still guided second-quarter sales to €8.4 billion to €9.0 billion, keeping the near-term picture firm. (cnbc.com) (asml.com) The immediate test comes on April 16, when Taiwan Semiconductor Manufacturing Co. reports full first-quarter earnings. After ASML’s outlook increase and Taiwan Semiconductor Manufacturing Co.’s record revenue, the market is now waiting to see whether profits confirm the same demand picture. (reuters.com) (tsmc.com)