Dutch semiconductor equipment manufacturer ASML plans to make a substantial new investment in its Wilton manufacturing and research facility, shifting more of its operations toward advanced chipmaking technology to meet the surging demand fueled by artificial intelligence.
The initiative will involve reconfiguring existing manufacturing space, investing in equipment and expanding the workforce, Jim Koonmen, ASML’s chief customer officer and president of its U.S. operations, told Hartford Business Journal during an interview Thursday.
ASML has not yet determined the investment’s total cost or how many jobs it will create, Koonmen said. The company employs more than 3,000 people in Wilton.
“We’re doubling down on the advanced technology that we’re going to be doing at that site,” he said.
The changes will dedicate a greater share of Wilton’s manufacturing, design and development activities to extreme ultraviolet (EUV) lithography systems, which are used to produce the advanced semiconductors powering AI applications.
Lithography uses light to transfer intricate circuit patterns onto silicon wafers. EUV technology enables manufacturers to create the extremely small patterns needed for increasingly powerful chips.
The facility at 77 Danbury Road in Wilton produces critical components for every lithography system ASML manufactures, including its most advanced EUV machines.
The Wilton facility also plays a key role in developing components for ASML’s next-generation High-NA EUV systems, which produce even finer circuit patterns than existing machines.
Koonmen compared the technology to a camera with a larger aperture, allowing it to capture sharper, higher-resolution images. The new systems, he said, are expected to enter high-volume manufacturing at customer facilities within the next year or two, with Wilton playing a central role in their development and production.
The changes will involve converting portions of the facility currently devoted to older-generation lithography systems to accommodate greater EUV production, Koonmen said.
“It will be a substantial investment in facilities” and capital expenditures at the site, he said.
The new plans follow ASML’s $200 million expansion in Wilton, announced in 2022, which included additional manufacturing capacity for existing EUV systems and next-generation High-NA EUV technology. Koonmen said that expansion is now complete.
The new initiative comes as ASML faces unprecedented demand for its equipment.
The company announced Wednesday that third-quarter net sales reached a record 11.7 billion euros, with net income of 5 billion euros. ASML projects full-year sales of 44 billion to 45 billion euros.
ASML also warned that its currently planned production capacity for 2027 and 2028 will not fully satisfy anticipated customer demand.
The company is targeting a 30% increase in production of its existing EUV systems in 2027 and another 30% increase in 2028, Koonmen said.
Meeting the increased production targets will require suppliers to also increase production and ASML to recruit and train additional workers, he said.
AI is also changing how ASML operates. The company is using the technology to improve its products, software development and equipment maintenance, Koonmen said.ASML has about 5,000 to 6,000 lithography machines worldwide, and he said AI could help technicians diagnose problems and identify needed repairs more quickly, reducing equipment downtime.
“AI is an accelerant for us,” Koonmen said, adding that the company views the technology as a way to expand its capabilities rather than just reduce costs.
Wilton has been a center of semiconductor technology for approximately four decades, dating to operations under Perkin-Elmer and later Silicon Valley Group, before ASML acquired the business.
The facility’s combination of manufacturing, engineering, research and supply chain operations allows it to handle increasingly sophisticated assignments without having to develop those capabilities elsewhere, Koonmen said.
He attributed the Wilton facility’s growing importance to its experienced workforce and combination of engineering, manufacturing and supply chain capabilities.
“We have no plans to move anywhere,” Koonmen said. “It’s the education, the expertise that is in the workforce there is just unbelievable. It’s totally critical for what we do.”