ASML makes and services semiconductor-manufacturing equipment; TSMC uses fabrication plants to manufacture chips designed by customers. That is the central difference in how they make money: ASML sells tools and lifecycle support to chipmakers, while TSMC sells manufacturing capacity and related foundry services. Their reported revenues therefore describe different activities, not directly comparable products.
What does each company sell?
ASML sells equipment and support
ASML develops and sells lithography systems and other semiconductor-manufacturing equipment, as well as software, metrology and inspection capabilities, and customer support. Lithography systems help chipmakers pattern the tiny features that make up integrated circuits. A system sale is typically tied to a customer’s investment in manufacturing capacity; ASML can continue earning revenue later by servicing, maintaining and upgrading equipment already installed at customer sites.
TSMC manufactures for customers
Taiwan Semiconductor Manufacturing Company (TSMC) is a pure-play foundry: it manufactures semiconductor products designed by customers rather than selling chips under its own brand. The company says this model is intended to avoid competing with those customers. Its offering centers on wafer fabrication, supported by capabilities such as advanced packaging and chip stacking.
In TSMC’s 2025 annual report, Chairman and CEO C.C. Wei described the approach this way: “Our success is predicated on our steadfast adherence to the pure-play foundry business model.” TSMC 2025 Annual Report
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The latest annual figures in the cited reports are for 2025. ASML reports in euros; TSMC reports in U.S. dollars and New Taiwan dollars. The amounts below should not be read as a precise company-size ranking: they use different currencies and represent equipment-and-service sales versus foundry manufacturing revenue.
| Company | 2025 reported revenue | What the revenue represents | Reported mix or indicator |
|---|---|---|---|
| ASML | €32.667 billion total net sales | Sales of semiconductor-manufacturing systems, plus service and field-option sales | €24.474 billion in net system sales (74.9%); €8.193 billion in net service and field-option sales (25.1%) |
| TSMC | US$122.42 billion consolidated revenue; also NT$3,809.05 billion | Manufacturing semiconductor products for customers, with supporting foundry capabilities | Advanced technologies accounted for 74% of wafer revenue; this is a technology mix, not a separate revenue segment |
ASML’s sales split and growth figures are from its 2025 annual report filed with the U.S. Securities and Exchange Commission. TSMC’s revenue and technology mix are from its 2025 annual report.
ASML: system deliveries and a growing installed base
In 2025, ASML’s total net sales rose 15.6% year over year. System sales rose 12.4%, while service and field-option sales rose 26.2%. The company linked service growth to its larger installed base, greater use of lithography tools by some customers, and EUV field upgrades. Services and field options made up about one quarter of 2025 net sales, giving ASML a meaningful source of revenue beyond new equipment deliveries.
TSMC: wafer production across process technologies
TSMC’s 2025 figures show how its revenue is distributed by manufacturing technology, rather than by an equipment-versus-service split. Technologies at 7 nanometers and more advanced represented 74% of total wafer revenue, including 3-nanometer technologies at 24%. Those percentages are shares of wafer revenue, not separate company-wide revenue lines that can be compared directly with ASML’s system and service categories.
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What drives demand—and how customer exposure differs
ASML depends on chipmakers’ investment decisions
ASML’s equipment demand is tied to customers’ capital-expenditure plans: chipmakers buy or expand manufacturing tools when they invest in production capacity. That creates exposure to the timing of large equipment orders as well as the longer-term opportunity to service and upgrade the installed base. Customer concentration is material: in 2025, ASML’s two largest customers together represented 38.0% of net sales, and its largest customer alone represented 23.9%.
TSMC sells capacity to a broad customer base
TSMC reported 534 customers, 12,682 products and 305 process technologies for 2025. Annual capacity at facilities managed by the company and its subsidiaries exceeded 17 million 12-inch-equivalent wafers. Its demand depends on customers’ need for wafer fabrication, the process technologies and capacity they require, and supporting packaging capabilities. TSMC cited demand across high-performance computing, smartphones, automotive, the Internet of Things and consumer electronics.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Investment, margins and the limits of a direct comparison
ASML and TSMC occupy different links in the semiconductor supply chain. ASML invests in developing and producing complex manufacturing systems and supports those systems over their operating life. TSMC invests in and operates fabrication capacity, then manufactures customers’ designs. A comparison of their revenue totals therefore mixes equipment and service sales with the sale of foundry manufacturing output.
Their reported 2025 gross margins were 52.8% for ASML and 59.9% for TSMC. The percentages reflect different product, investment and accounting mixes; TSMC’s higher reported margin alone does not establish that it has a superior business. Likewise, converting ASML’s euro revenue into dollars for comparison would require choosing an exchange-rate date and method, so the reported totals are best kept in their original currencies.
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