Zeiss Counters AI Lithography Bottleneck Concerns: New 25,000 sqm Factory in Germany to Support ASML Until 2040

Frank Rohmund, President of Semiconductor Manufacturing Technology at Germany's Zeiss Group, recently stated that as the sole supplier of EUV optical systems for ASML, Zeiss has sufficient and scalable production capacity to meet the growing demand for advanced chips driven by cloud giants' continued investments in AI infrastructure. The company expects significant growth in its semiconductor business this year.

At the end of last month, Zeiss announced the addition of approximately 25,000 square meters of new production and support space at its headquarters in Oberkochen, southern Germany. Employees moved into the newly completed facility in August after a four-year construction period, with remaining buildings to be delivered in phases.

In an interview with Bloomberg Information, Rohmund explicitly rejected market concerns about supply chain bottlenecks in AI chip production, noting that Zeiss is simultaneously constructing new factories in other sites such as Wetzlar, ensuring future production scalability.

Rohmund emphasized that these investments represent "long-term expansions truly critical to capacity growth." Zeiss and ASML jointly develop their technology roadmap, with long-term planning extending to around 2040.

Oberkochen and Wetzlar are the only two locations globally capable of manufacturing optical components for ASML's lithography machines. Zeiss exclusively supplies EUV lenses, mirrors, illuminators, and collectors. The next-generation High-NA EUV optical system contains over 40,000 projection components, weighs approximately 12 tons, and has a volume and weight about seven times that of standard EUV systems. Single mirrors are polished to atomic-level precision, coated with over 100 layers, and take nearly a year to manufacture. Zeiss components are involved in the production of approximately 80% of chips worldwide.

However, the biggest risk stems from U.S.-China tensions. The U.S. has already banned ASML from exporting EUV and advanced immersion DUV systems to China, and U.S. lawmakers are pushing to bring all DUV systems under export controls. As Zeiss is also a key optical supplier for DUV systems, any expansion of these restrictions could negatively impact its related business.