"Our higher than expected Q2 bookings intake further confirms the steady capacity increase need of the semiconductor industry, and the growing market acceptance of ASML technology," said Eric Meurice, president and CEO. "In particular, ASML continues to strengthen its technology leadership through immersion, as customers are starting qualification of our TWINSCAN XT:1700i's capabilities down to the 45-nanometer node."

Most of the orders are to be shipped between Q406 and 1Q07, according to the company.
Sources indicated that demand from memory chip manufacturers, both NAND Flash and DRAM were the key purchasers as demand is expected to remain strong leading into 2007. Both 248nm KrF and 193nm Arf tools are being ordered, according to sources.

Both Nikon and Canon have recently guided that lithography tool orders were expected to increase through 2006. Nikon noted the continued shift to 193nm Arf orders and the subsequent improvement in average selling prices, pushing revenues up for the financial year ahead.

ASML also stated that R&D expenditures would rise in the quarter by around 5 million Euros due to accelerated customer roadmaps. This was interpreted by sources as confirmation that the previously projected orders for immersion lithography tools was on track.

Update: 24.5.06: The increased bookings for 2Q06 have, according to more sources come from a broad range of customers that include foundries, IDM's and memory manufacturers. The sources claim that ASML's 300mm i-line tools were ordered in particular, suggesting that foundries are having to migrate customers using 180nm and 130nm processes at 200mm fabs to the available capacity at 300mm fabs. Most 300mm fabs of TSMC and UMC are used for 130nm and below processes.

Foundries have been struggling to meet demand for trailing edge nodes at older 200mm fabs as they have been tight on capacity since 3Q05.