Zeiss SMT expands German site critical to ASML EUV scanner production

Zeiss Semiconductor Manufacturing Technology (Zeiss SMT) has confirmed it is adding approximately 25,000 square meters of production and production-adjacent space at its site in Oberkochen, southern Germany. Staff began moving into the first completed building this month, four years after the groundbreaking in 2022. The remaining buildings will be handed over in stages.

Oberkochen and Wetzlar are the only two locations in the world where the optical columns inside ASML's lithography scanners can be built. According to ASML's own annual report, the number of systems ASML can produce is limited by Zeiss SMT's production capacity. ASML told investors earlier this month that it plans to increase Low-NA EUV output by roughly 30% in 2027.

Exclusive Supplier Relationship

ASML's 2025 annual report describes Carl Zeiss SMT as its sole supplier of lenses, mirrors, illuminators, collectors, and other critical optical components, held under an exclusive arrangement. The filing warns that if Zeiss could not sustain production over a prolonged period, ASML "would effectively cease to be able to conduct our business."

Purchases from Zeiss SMT and its subsidiaries reached:

• €4.41 billion in 2025
• €3.95 billion in 2024
• €3.33 billion in 2023

(1 Euro = 1.14 USD)

Capacity and Pricing Outlook

CFO Roger Dassen said during ASML's July earnings call that the company is:

• Nearly fully booked on Low-NA EUV for 2027
• Raising capacity by approximately 30% from roughly 65 systems this year
• Evaluating another 30% increase for 2028

Dassen also told reporters that ASML is compressing its scanner build cycle from around 22 weeks to 15 or 16 weeks. It is understood that ASML is planning price hikes for Low-NA EUV machines, a move that has reportedly upset TSMC.

High-NA EUV Optics: Complexity and Scale

High-NA projection optics contain more than 40,000 parts and weigh approximately 12 tons — roughly seven times the volume and weight of standard EUV optics. The illumination system adds another 25,000 parts and 6 tons.

Individual High-NA mirrors weigh several hundred kilograms — around twice the size and 10 times the weight of current EUV mirrors. Zeiss says they are machined for months before reaching the required figure. Verifying them requires a purpose-built vacuum chamber measuring 5 by 10 meters, made up of over 100,000 parts and weighing more than 150 tons.

Intel became the first company to ship high-volume logic on 0.55 NA scanners this month. Adding floor space does not shorten any of these steps.

Financial Support and Loans

ASML held €1.91 billion in loans receivable from Zeiss SMT at the end of 2025, up from €1.44 billion a year earlier, alongside €1.19 billion in advance payments made to secure optical column deliveries.

Key loan facilities include:

• Two €1 billion facilities, signed in September 2021 and September 2024
• €444 million loan issued in July 2025
• €212.5 million short-term loan issued in November 2025

A May 2025 restatement of the framework agreement made the capex loans interest-free, with repayment expected over 7 or 15 years and quarterly installments that vary with Zeiss SMT's revenue.

Zeiss SMT Financial Performance and Expansion

Zeiss SMT booked €5.055 billion in the fiscal year ending September 30, 2025 — up 23% and the largest of the Zeiss Group's four segments.

Additional expansion efforts include:

• Building a multifunction factory at Wetzlar
• Adding 300 square meters of cleanroom at Rossdorf last fall
• Opening an innovation center in Korea this month

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