Adoption of Extreme Ultraviolet (EUV) and immersion lithography across memory (including DRAM) and advanced logic customers continues to accelerate, driving structurally higher lithography intensity and sustained demand for ASML systems.
In response, Frencken (SGX:E28) is working closely with customers to expand capacity through 2026 and 2027, as customer 2026 capacity is largely committed and capital expenditure is rising to alleviate persistent supply constraints. This trajectory supports expected ~16% y-o-y revenue growth in FY26, driven by higher system shipments and continued expansion of the installed base services business, reinforcing a multi-year EUV volume upcycle as advanced logic and DRAM nodes scale into 3nm/2nm and HBM-driven layer intensity increases—boding well for suppliers such as Frencken.
Improving visibility for front‑end equipment demand.
- Read this at SGinvestors.io -
In addition, the gradual shift of manufacturing activities from Europe to Asia by the key customer should be supportive of Frencken’s outlook, as production costs in Asia are structurally lower than in Europe, enhancing overall competitiveness and margin resilience.
Backend equipment as the next structural growth driver.
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
