China gains share of ASML system sales as chipmakers stockpile tools

China accounted for 23% of ASML’s system sales in Q3, up from 14% in Q2, as Chinese semiconductor manufacturers rushed to secure more equipment. Taiwan remained the largest market at 32%, followed by South Korea at 31%. The United States accounted for 13%, behind China.

ASML reported gross revenue of €11.7 billion, a gross margin of 57.5%, and net income of €5.0 billion for Q3 2026. The increased Chinese share of system sales comes as memory and storage manufacturers reportedly build equipment reserves to sustain expansion even if access to suppliers is cut off.

Memory maker CXMT and storage manufacturer YMTC have reportedly secured enough DUV lithography tools from ASML to support their growth plans for the next three years. The stockpiling comes amid rising tensions and potential restrictions on exports of these older tools to China. The United States government is reportedly pressuring the Dutch government to halt tool exports to China entirely.