ASML vs. Taiwan Semiconductor Manufacturing: Which Technology Stock Is a Better Buy in 2026?

ASML and Taiwan Semiconductor Manufacturing (TSM) are often compared because they are tightly linked in the chip supply chain, even though their business models differ. ASML makes the lithography systems—especially Extreme Ultraviolet (EUV) and Deep Ultraviolet (DUV)—used to print circuits on silicon; it says it is the world’s only EUV lithography system manufacturer. In 2025, ASML reported about $36.6 billion in revenue, roughly $10.8 billion in net income, and raised its 2026 net sales outlook to €43–45 billion. TSMC, a pure-play foundry, generated about $121.3 billion in 2025 revenue and says advanced nodes at 7 nanometers and below were 74% of wafer revenue.