Behind highly secured doors in a giant lab in the Netherlands, there’s a machine that’s transforming how microchips are made. ASML spent nearly a decade developing High NA, which stands for high numerical aperture. With a price tag of more than $400 million, it’s the world’s most advanced and expensive chipmaking machine.
CNBC went to the Netherlands for a tour of the lab in April. Before that, High NA had never been filmed, even by ASML’s own team.
Inside the lab, High NA qualification team lead Assia Haddou gave CNBC an exclusive, up-close look at the High NA machines, which she said are “bigger than a double-decker bus.”
The machine is made up of four modules, manufactured in Connecticut, California, Germany and the Netherlands, then assembled in the Veldhoven, Netherlands, lab for testing and approval, before being disassembled again to ship out. Haddou said it takes seven partially loaded Boeing 747s, or at least 25 trucks, to get one system to a customer.
The world’s first commercial installation of High NA happened at Intel‘s Oregon chip fabrication plant, or fab, in 2024. Only five of the colossal machines have ever been shipped.
High NA is the latest generation of ASML’s Extreme Ultraviolet, or EUV, machines. ASML is the exclusive maker of EUV, the only lithography devices in the world capable of projecting the smallest blueprints that make up the most advanced microchips. Chip designs from giants like Nvidia, Apple and AMD can’t be manufactured without EUV.
ASML told CNBC that High NA will eventually be used by all its EUV customers. That includes other advanced chipmakers like Micron, SK Hynix and Rapidus.
“This company has that market completely cornered,” said Daniel Newman of The Futurum Group.
High NA chipmaking machine in Veldhoven, Netherlands, on April 24, 2025.
Magdalena Petrova
CNBC asked CEO Christophe Fouquet what’s stopping ASML from setting the price of its machines even higher. He explained that as machines advance, they make it cheaper to produce the chips themselves.
“Moore’s law says that we need to continue to drive costs down,” Fouquet said. “There is a belief that if you drive costs down, you create more opportunity, so we need to be part of this game.”
Two major customers have confirmed that High NA has shown big improvements over ASML’s previous EUV machines. At a conference in February, Intel said it had used High NA to make about 30,000 wafers so far, and that the machine was about twice as reliable as its predecessors. At that same conference, Samsung said High NA could reduce its cycle time by 60%, meaning its chips can complete more operations per second.
‘A very risky investment’
High NA can drive chip prices down because of these improvements in speed and performance. High NA also improves yield, meaning more of the chips on each wafer are usable.
That’s because it can project chip designs at a higher resolution. High NA uses the same process as EUV machines but with a larger lens opening that allows for projection of smaller chip design in fewer steps.
“High NA means two things. First and foremost, shrink. So there’s more devices on a single wafer,” said Jos Benschop, ASML’s executive vice president of technology. “Secondly, by avoiding multiple patterning, you can make them faster and you can make them with higher yield.”
Benschop joined ASML in 1997, two years after it became a publicly traded company. Benschop then helped drive the decision to go all in on EUV. The technology took more than 20 years to develop.
ASML executive VP of technology Jos Benschop gave CNBC’s Katie Tarasov a look at High NA chipmaking in Veldhoven, Netherlands, on April 24, 2025.
Magdalena Petrova
“We barely made it. I think sometimes people forget that,” Fouquet said. “It’s been a very risky investment because when we started, there was no guarantee the technology would work.”
By 2018, ASML proved the viability of EUV and major chipmakers started placing big orders for the machines. The idea, which seemed impossible to many two decades ago, was to create large amounts of tiny rays of extreme ultraviolet light, projecting it through masks with increasingly small chip designs, onto wafers of silicon treated with photoresist chemicals.
To create the EUV light, ASML shoots molten tin out of a nozzle at 50,000 droplets per second, shooting each drop with a powerful laser that creates a plasma that’s hotter than the sun. Those tiny explosions are what emit photons of the EUV light, with a wavelength of just 13.5 nanometers.
About the width of five DNA strands, EUV is so small that it’s absorbed by all known substances, so the whole process has to happen in a vacuum. The EUV light bounces off mirrors that aim it through a lens, much like how a camera works. To solve for EUV getting absorbed by mirrors, German optics company Zeiss made specific mirrors just for ASML that are the flattest surfaces in the world.
ASML’s older generation DUV machines use less precise rays of deep ultraviolet light with a wavelength of 193 nanometers. ASML still makes the machines — competing against Nikon and Canon in Japan on DUV — but it is the only company in the world that’s succeeded at EUV lithography.
The Dutch company began developing the $400 million High NA machines around 2016. High NA machines work the same as DUV, with the same EUV light source. But there’s one key difference.
The higher numerical aperture of High NA means it has a larger lens opening, increasing the angle at which the light is captured by the mirrors. More light coming in from steeper angles allows High NA machines to transfer increasingly small designs onto the wafer in one step. By comparison, lower NA machines require multiple projections of EUV light, through multiple masks.
“When the number increases, it gets very complex process-wise and the yield goes down,” Fouquet said.
Resolution improves as NA increases, bringing down the need for multiple masks and exposures, saving time and money. The cost of the High NA machine, however, goes up.
“The bigger the mirror you have to use and therefore the bigger the system,” Fouquet said.
These machines also take up a huge amount of power.
“If we don’t improve the power efficiency of our AI chips over time, the training of the models could consume the entire worldwide energy and that could happen around 2035,” Fouquet said. That’s why ASML has reduced the power needed per wafer exposure by more than 60% since 2018, he said.
ASML’s Assia Haddou shows CNBC’s Katie Tarasov a High NA chipmaking machine in Veldhoven, Netherlands, on April 24, 2025.
Magdalena Petrova
China, tariffs and U.S. growth
ASML is known for its groundbreaking EUV machines, but its older DUV machines still made up 60% of business in 2024. ASML sold 44 EUV machines last year, with a price tag starting at $220 million. DUV machines are far cheaper, ranging from $5 million to $90 million, but ASML sold 374 of the legacy machines in 2024.
China is a major buyer of those DUV systems, making up 49% of ASML’s business in the second quarter of 2024. Fouquet told CNBC this peak in sales to China came because of a “huge backlog” in orders that ASML wasn’t able to fill until last year. He said business in China should be back to the “historical normal” of between 20% and 25% in 2025.
U.S. export controls prevent ASML from selling EUV to China. It’s a ban that started under the first Trump administration. Newman of The Futurum Group said it’s a “real long shot” that China could develop its own EUV machines, instead making devices like smartphones using the most advanced chips possible with DUV.
U.S. concern over advanced tech making its way to China has accelerated amid the generative artificial intelligence race. That boom has also sent chip stocks soaring, including ASML’s, which hit an all-time high in July.
ASML’s share price has declined more than 30% since, as the chip industry faces key uncertainties such as President Donald Trump‘s tariffs.
Benschop told CNBC that ASML simply doesn’t know how tariffs will impact the company. With about 800 global suppliers, tariff implications for ASML are complex.
Making a single High NA machine requires many steps of imports and exports. The machine’s four modules are made in the U.S., Netherlands and Germany, then they’re shipped to the Netherlands for assembly and testing, where they’re disassembled again for shipment to chip fabs in places like the U.S. or Asia.
For years, Asia has made up more than 80% of ASML’s business. The U.S. share sat around 17% in 2024 but is growing fast. ASML has 44,000 employees globally, and 8,500 of them are based in the U.S. across 18 offices.
Many of ASML’s 2024 High NA shipments went to Intel, which is building new fabs in Ohio and Arizona. The U.S.-based chipmaker has struggled in recent years, but Fouquet said that Intel remains a “formidable partner” for ASML and that it’s “very critical” for U.S. semiconductor independence.
Taiwan-based TSMC is far ahead of Intel in advancing chip nodes. CNBC recently visited TSMC’s new fab north of Phoenix, which is now in volume production. As the most advanced chip fab on U.S. soil, the need for High NA there will likely come soon.
ASML, meanwhile, is building its first U.S. training center in Arizona. Fouquet told CNBC it will open in the “next few months” with a goal of training 1,200 people on EUV and DUV each year. It’s “a capacity that will not only meet what is needed in the U.S., but will be used also to train even more people worldwide,” he said.
The Dutch company plans to further increase the numerical aperture on its next machine, Hyper NA.
Fouquet told CNBC that ASML has some draft optical designs for this next machine, and that, “it’s not necessarily a difficult product.” He expects the need for Hyper NA to come “between 2032 and 2035.” He wouldn’t speculate on price.
For now, ASML is focused on meeting demand for High NA. It plans to ship at least five more systems this year and ramping to a production capacity of 20 machines in a few years.
Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.
The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.
“MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”
SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.
The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.
David Laude, who served as the crew’s commander, described a typical day.
“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”
An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.
“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.
Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen
Mike Segar | Reuters
Apple had two major launches last month. They couldn’t have been more different.
First, Apple revealed some of the artificial intelligence advancements it had been working on in the past year when it released developer versions of its operating systems to muted applause at its annual developer’s conference, WWDC. Then, at the end of the month, Apple hit the red carpet as its first true blockbuster movie, “F1,” debuted to over $155 million — and glowing reviews — in its first weekend.
While “F1” was a victory lap for Apple, highlighting the strength of its long-term outlook, the growth of its services business and its ability to tap into culture, Wall Street’s reaction to the company’s AI announcements at WWDC suggest there’s some trouble underneath the hood.
“F1” showed Apple at its best — in particular, its ability to invest in new, long-term projects. When Apple TV+ launched in 2019, it had only a handful of original shows and one movie, a film festival darling called “Hala” that didn’t even share its box office revenue.
Despite Apple TV+being written off as a costly side-project, Apple stuck with its plan over the years, expanding its staff and operation in Culver City, California. That allowed the company to build up Hollywood connections, especially for TV shows, and build an entertainment track record. Now, an Apple Original can lead the box office on a summer weekend, the prime season for blockbuster films.
The success of “F1” also highlights Apple’s significant marketing machine and ability to get big-name talent to appear with its leadership. Apple pulled out all the stops to market the movie, including using its Wallet app to send a push notification with a discount for tickets to the film. To promote “F1,” Cook appeared with movie star Brad Pitt at an Apple store in New York and posted a video with actual F1 racer Lewis Hamilton, who was one of the film’s producers.
(L-R) Brad Pitt, Lewis Hamilton, Tim Cook, and Damson Idris attend the World Premiere of “F1: The Movie” in Times Square on June 16, 2025 in New York City.
Jamie Mccarthy | Getty Images Entertainment | Getty Images
Although Apple services chief Eddy Cue said in a recent interview that Apple needs the its film business to be profitable to “continue to do great things,” “F1” isn’t just about the bottom line for the company.
Apple’s Hollywood productions are perhaps the most prominent face of the company’s services business, a profit engine that has been an investor favorite since the iPhone maker started highlighting the division in 2016.
Films will only ever be a small fraction of the services unit, which also includes payments, iCloud subscriptions, magazine bundles, Apple Music, game bundles, warranties, fees related to digital payments and ad sales. Plus, even the biggest box office smashes would be small on Apple’s scale — the company does over $1 billion in sales on average every day.
But movies are the only services component that can get celebrities like Pitt or George Clooney to appear next to an Apple logo — and the success of “F1” means that Apple could do more big popcorn films in the future.
“Nothing breeds success or inspires future investment like a current success,” said Comscore senior media analyst Paul Dergarabedian.
But if “F1” is a sign that Apple’s services business is in full throttle, the company’s AI struggles are a “check engine” light that won’t turn off.
Replacing Siri’s engine
At WWDC last month, Wall Street was eager to hear about the company’s plans for Apple Intelligence, its suite of AI features that it first revealed in 2024. Apple Intelligence, which is a key tenet of the company’s hardware products, had a rollout marred by delays and underwhelming features.
Apple spent most of WWDC going over smaller machine learning features, but did not reveal what investors and consumers increasingly want: A sophisticated Siri that can converse fluidly and get stuff done, like making a restaurant reservation. In the age of OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini, the expectation of AI assistants among consumers is growing beyond “Siri, how’s the weather?”
The company had previewed a significantly improved Siri in the summer of 2024, but earlier this year, those features were delayed to sometime in 2026. At WWDC, Apple didn’t offer any updates about the improved Siri beyond that the company was “continuing its work to deliver” the features in the “coming year.” Some observers reduced their expectations for Apple’s AI after the conference.
“Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view,” wrote Jefferies analysts this week.
Siri should be an example of how Apple’s ability to improve products and projects over the long-term makes it tough to compete with.
It beat nearly every other voice assistant to market when it first debuted on iPhones in 2011. Fourteen years later, Siri remains essentially the same one-off, rigid, question-and-answer system that struggles with open-ended questions and dates, even after the invention in recent years of sophisticated voice bots based on generative AI technology that can hold a conversation.
Apple’s strongest rivals, including Android parent Google, have done way more to integrate sophisticated AI assistants into their devices than Apple has. And Google doesn’t have the same reflex against collecting data and cloud processing as privacy-obsessed Apple.
Some analysts have said they believe Apple has a few years before the company’s lack of competitive AI features will start to show up in device sales, given the company’s large installed base and high customer loyalty. But Apple can’t get lapped before it re-enters the race, and its former design guru Jony Ive is now working on new hardware with OpenAI, ramping up the pressure in Cupertino.
“The three-year problem, which is within an investment time frame, is that Android is racing ahead,” Needham senior internet analyst Laura Martin said on CNBC this week.
Apple’s services success with projects like “F1” is an example of what the company can do when it sets clear goals in public and then executes them over extended time-frames.
Its AI strategy could use a similar long-term plan, as customers and investors wonder when Apple will fully embrace the technology that has captivated Silicon Valley.
Wall Street’s anxiety over Apple’s AI struggles was evident this week after Bloomberg reported that Apple was considering replacing Siri’s engine with Anthropic or OpenAI’s technology, as opposed to its own foundation models.
The move, if it were to happen, would contradict one of Apple’s most important strategies in the Cook era: Apple wants to own its core technologies, like the touchscreen, processor, modem and maps software, not buy them from suppliers.
Using external technology would be an admission that Apple Foundation Models aren’t good enough yet for what the company wants to do with Siri.
“They’ve fallen farther and farther behind, and they need to supercharge their generative AI efforts” Martin said. “They can’t do that internally.”
Apple might even pay billions for the use of Anthropic’s AI software, according to the Bloombergreport. If Apple were to pay for AI, it would be a reversal from current services deals, like the search deal with Alphabet where the Cupertino company gets paid $20 billion per year to push iPhone traffic to Google Search.
The company didn’t confirm the report and declined comment, but Wall Street welcomed the report and Apple shares rose.
In the world of AI in Silicon Valley, signing bonuses for the kinds of engineers that can develop new models can range up to $100 million, according to OpenAI CEO Sam Altman.
“I can’t see Apple doing that,” Martin said.
Earlier this week, Meta CEO Mark Zuckerberg sent a memo bragging about hiring 11 AI experts from companies such as OpenAI, Anthropic, and Google’s DeepMind. That came after Zuckerberg hired Scale AI CEO Alexandr Wang to lead a new AI division as part of a $14.3 billion deal.
Meta’s not the only company to spend hundreds of millions on AI celebrities to get them in the building. Google spent big to hire away the founders of Character.AI, Microsoft got its AI leader by striking a deal with Inflection and Amazon hired the executive team of Adept to bulk up its AI roster.
Apple, on the other hand, hasn’t announced any big AI hires in recent years. While Cook rubs shoulders with Pitt, the actual race may be passing Apple by.
Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
Kevin Dietsch | Getty Images
Tesla CEO Elon Musk, who bombarded President Donald Trump‘s signature spending bill for weeks, on Friday made his first comments since the legislation passed.
Musk backed a post on X by Sen. Rand Paul, R-Ky., who said the bill’s budget “explodes the deficit” and continues a pattern of “short-term politicking over long-term sustainability.”
The House of Representatives narrowly passed the One Big Beautiful Bill Act on Thursday, sending it to Trump to sign into law.
Paul and Musk have been vocal opponents of Trump’s tax and spending bill, and repeatedly called out the potential for the spending package to increase the national debt.
The independent Congressional Budget Office has said the bill could add $3.4 trillion to the $36.2 trillion of U.S. debt over the next decade. The White House has labeled the agency as “partisan” and continuously refuted the CBO’s estimates.
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The bill includes trillions of dollars in tax cuts, increased spending for immigration enforcement and large cuts to funding for Medicaid and other programs.
It also cuts tax credits and support for solar and wind energy and electric vehicles, a particularly sore spot for Musk, who has several companies that benefit from the programs.
“I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post in early June as the pair traded insults and threats.
Shares of Tesla plummeted as the feud intensified, with the company losing $152 billion in market cap on June 5 and putting the company below $1 trillion in value. The stock has largely rebounded since, but is still below where it was trading before the ruckus with Trump.
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Tesla one-month stock chart.
— CNBC’s Kevin Breuninger and Erin Doherty contributed to this article.