ASML makes money by selling semiconductor-manufacturing systems and servicing the equipment it has installed at chipmakers. TSMC makes money by manufacturing chips designed by its customers. Their revenue totals therefore describe different activities, not two versions of the same semiconductor sale. In 2025, ASML reported €32.667 billion in net sales, while TSMC reported US$122.42 billion in consolidated revenue; the figures use different currencies and business models.
How do ASML and TSMC make money?
The simplest distinction is what each company sells. ASML sells lithography systems and related manufacturing equipment, software, metrology and inspection capabilities, and customer support. TSMC sells manufacturing services: it operates fabrication capacity to produce semiconductor products designed by customers.
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That places the companies at different points in the chip supply chain. ASML supplies tools that chipmakers use in production; TSMC is one of the manufacturers that uses advanced production equipment to make chips. TSMC says it avoids designing, manufacturing, or marketing semiconductor products under its own name so that it does not compete with its customers. Chairman and CEO C.C. Wei described the approach in the 2025 annual report: “Our success is predicated on our steadfast adherence to the pure-play foundry business model.” TSMC 2025 Annual Report.
What makes up ASML’s revenue?
ASML’s 2025 annual report divides its €32.667 billion in net sales into two main categories: systems and service and field-option sales. Systems were the larger category, while servicing and upgrading equipment already in use formed a substantial second stream. ASML 2025 Annual Report, filed with the SEC.
| ASML revenue category | 2025 net sales | Share of 2025 net sales |
|---|---|---|
| System sales | €24.474 billion | 74.9% |
| Service and field-option sales | €8.193 billion | 25.1% |
| Total net sales | €32.667 billion | 100% |
ASML’s total 2025 sales rose 15.6% year over year. System sales grew 12.4%, while service and field-option sales grew 26.2%. The company linked service growth to a larger installed base, greater use of lithography tools by some customers, and EUV field upgrades. These services and upgrades give ASML a way to earn revenue beyond the initial delivery of a system, although equipment orders remain the majority of sales.
What makes up TSMC’s revenue?
TSMC earns revenue by manufacturing customers’ semiconductor products. Its 2025 consolidated revenue was US$122.42 billion, or NT$3,809.05 billion, according to the company’s annual report. The two currency figures are TSMC’s reported presentations of its revenue, not separate revenue streams. TSMC 2025 Annual Report.
Rather than selling its own branded chips, TSMC manufactures products customers design. Its revenue depends on demand for wafer fabrication, the process technologies and production capacity customers need, and supporting capabilities such as advanced packaging and chip stacking. The company serves demand across high-performance computing, smartphones, automotive, the Internet of Things, and consumer electronics.
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Technology mix is not a revenue-segment breakdown
In 2025, technologies at 7 nanometers and more advanced accounted for 74% of TSMC’s total wafer revenue, and 3-nanometer technologies accounted for 24%. The 3-nanometer share is part of the advanced-technology total, not an additional category to add to it. These percentages describe the technology mix of wafer revenue; they are not equivalent to ASML’s separate system-sales and service-sales categories.
TSMC reported 534 customers, 12,682 products, and 305 process technologies in 2025. Annual capacity at facilities managed by the company and its subsidiaries exceeded 17 million 12-inch-equivalent wafers. The capacity figure describes the scale of facilities, not the number of wafers sold in the year.
Why the 2025 revenue figures are not a direct size ranking
ASML’s €32.667 billion and TSMC’s US$122.42 billion are both 2025 company-reported totals, but the amounts are denominated in different currencies and arise from different activities. A precise nominal comparison would require choosing an exchange rate and date or method for conversion. Even after conversion, it would compare equipment-and-service sales with foundry-manufacturing revenue, not like-for-like output.
The distinction matters when interpreting margins, too. ASML reported a 52.8% gross margin for 2025; TSMC reported a 59.9% gross profit margin. The percentages reflect companies with different products, investment profiles, and accounting mixes. The higher reported percentage alone does not establish that one is a superior business.
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ASML depends on chipmakers’ equipment investment
ASML’s system demand is tied to semiconductor manufacturers’ capital-expenditure decisions: customers buy manufacturing systems when they invest in or expand production capabilities. Its customer base also has meaningful concentration. In 2025, ASML’s two largest customers together represented 38.0% of net sales, and its largest customer alone represented 23.9%.
TSMC sells manufacturing capacity to a broad customer base
TSMC’s exposure comes from customers’ needs for wafer fabrication and related manufacturing capabilities. Its 2025 annual report lists 534 customers, across 12,682 products and 305 process technologies. Those counts indicate breadth, but do not by themselves show how revenue is distributed among customers or end markets.
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What to keep in mind when comparing the companies
- Different products: ASML sells manufacturing systems and lifecycle services; TSMC manufactures customer-designed chips.
- Different revenue categories: ASML reports system sales separately from service and field-option sales. TSMC’s node percentages describe wafer-revenue technology mix, not comparable company revenue segments.
- Different demand drivers: ASML is exposed to chipmakers’ equipment-investment decisions; TSMC is exposed to customer demand for manufacturing capacity and production technologies.
- Different reported currencies: ASML’s 2025 revenue is in euros; TSMC’s is reported in U.S. dollars and New Taiwan dollars. A nominal ranking requires an explicit currency-conversion basis.
- Different margin contexts: Their reported gross-margin percentages should be read alongside differences in products, investment, and accounting mix, not as a standalone quality score.
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