ASML Secures Commitments as SEMI Calls for Chips Act 2.0 Reforms
ASML announced commitments from leading chipmakers including Samsung Electronics and Taiwan Semiconductor for High NA EUV lithography deployments, while SEMI today called on European policymakers to strengthen the proposed Chips Act 2.0 to reinforce Europe's semiconductor competitiveness and supply chain resilience. The dual developments signal both industry execution and policy urgency as the semiconductor sector approaches September 2026.
Recent Industry Developments Fueling Chip Momentum
The semiconductor industry has seen a flurry of milestones that should reinforce long-term structural demand.
Position Paper Sets out Nine Policy Recommendations to Bolster Europe's Role in Global Semiconductor Ecosystem
BRUSSELS – September 8, 2026 – SEMI today renews its call on European policymakers to use the proposed Chips Act 2.0 to strengthen Europe's semiconductor competitiveness, reinforce supply chain resilience, and create the conditions needed to attract and sustain investment across the entire semiconductor value chain. SEMI outlines nine policy recommendations in its latest Position Paper on the Chips Act 2.0, aimed at helping ensure Europe remains a vital contributor to the global semiconductor ecosystem.
Several new elements in the European Commission's draft legislative text reflect priorities raised by SEMI and its members in Europe. The proposal provides a solid basis to build on throughout the co-legislative process for further strengthening the Chips Act 2.0.
"Europe's semiconductor competitiveness depends on the strength of the entire ecosystem, from design and materials to equipment, manufacturing and advanced packaging," said Laith Altimime, President of SEMI Europe. "The Chips Act 2.0 provides an important opportunity to build on Europe's existing strengths. Our recommendations aim to ensure that the new framework delivers the speed, investment and policy certainty needed to strengthen Europe's competitiveness and resilience."
SEMI's recommendations call for an expanded First-Of-A-Kind framework covering the entire semiconductor value chain, faster and more predictable investment and permitting processes, stronger industry participation in Chips Act governance, and an ambitious and balanced EU budget. The position paper also highlights the need to address Europe's production-cost disadvantage, align demand-side initiatives with existing industry structures, establish secure and industry-led supply chain monitoring, and strengthen skills and workforce development.
SEMI will continue to engage with EU institutions, member states and industry stakeholders throughout the co-legislative process to support a Chips Act 2.0 that accelerates investment, supports all parts of the semiconductor value chain, and strengthens Europe's role in the global semiconductor ecosystem.
ON Semiconductor Surges 7.35% as AI Data Center Demand Drives Rally
ON Semiconductor Corp (ON) moved up by 7.35% on September 11, 2026, as broad market sentiment rebounded following the release of August consumer price index data. Inflation figures that aligned closely with consensus expectations, alongside a retreat in global crude oil prices, eased immediate fears of aggressive monetary tightening and sparked a broad relief rally across technology and semiconductor equities.
Strong quarterly performance and bullish artificial intelligence commentary from broader tech sector peers further energized risk-on appetite, encouraging institutional investors to aggressively buy dips in high-beta chipmakers. Compounding the macro tailwind is growing market anticipation surrounding the company's upcoming 2026 Investor Day. Investors and Wall Street analysts are repositioning ahead of executive presentations focused on the company's long-term growth trajectory.
A central catalyst is ON Semiconductor's expanding footprint in artificial intelligence data center power management, particularly high-voltage power architectures required for next-generation computing units. Analysts have increasingly highlighted the company's total addressable market expansion, driven by its strategic focus on AI infrastructure and specialized sensing technology, while expecting management to outline higher fab utilization targets and structural gross margin improvement.
From a market structure perspective, the rally was further amplified by favorable valuation metrics and a constructive technical setup following a recent consolidated pullback. Trading at attractive forward earnings multiples relative to projected medium-term growth, the stock attracted value-oriented buyers and systematic strategies. Bullish options activity and potential short-covering added momentum as the equity bounced off key technical support levels. Combined with long-term positioning in automotive electronics, ON Semiconductor's diverse end-markets provide downside protection in a cyclical sector.
September 2026 ETF Market: Diversified Exposure to Semiconductor Momentum
Over the past few months, the semiconductor industry has been experiencing an impressive rally, driven by surging capital expenditure in artificial intelligence infrastructure, persistent demand from hyperscalers and resilient corporate earnings. As broader markets evaluate seasonal shifts, September presents a strategic entry point for investors seeking to capture the next phase of this tech supercycle.
Yet with heightened single-stock volatility, managing this momentum requires a prudent risk-management strategy—making diversified exchange-traded funds (ETFs) offering exposure to semiconductor giants a far safer vehicle than concentrated bets on individual equity names.
Recent Industry Developments Fueling Chip Momentum
The semiconductor industry has seen a flurry of milestones that should reinforce long-term structural demand.
A major recent highlight is ASML Holdings' strategic partnership expansions with industry giants like Samsung Electronics and Taiwan Semiconductor TSM, accelerating the deployment of High NA Extreme Ultraviolet (EUV) lithography and pioneering a transition to 12-inch photomask technology. As part of these agreements, Samsung Electronics aims to introduce the High NA EUV into high-volume manufacturing for advanced DRAM memory chips by 2028, while TSM intends to deploy this technology in high-volume manufacturing for advanced logic nodes starting in 2030.
This tool implementation should lower chipmaking costs and boost productivity for advanced AI nodes.
Simultaneously, ASML initiated construction on a massive second industrial complex in the Netherlands' Brainport region—spanning 350,000 square meters—to dramatically expand manufacturing capacity, with the first phase targeted for completion by 2029.
In July, Micron Technology MU announced an expanded $250 billion U.S. capital investment plan through 2035 to build a massive domestic factory campus in Clay, NY, alongside expansions in Boise, ID, and Manassas, VA. These manufacturing capacity expansion initiatives, along with increasing capex projections like the one done by TSM recently, provide concrete evidence that equipment suppliers and foundries are preparing for sustained, multi-year volume growth.
Market Reactions and Investor Sentiment
The semiconductor sector's Q3 2026 performance reflects both policy developments and execution milestones. ASML's capacity expansion and the High NA EUV adoption roadmap demonstrate that equipment vendors are preparing for the AI node transition, while company-specific developments like ON Semiconductor's AI data center momentum show how individual players are capturing the trend. The Chips Act 2.0 policy conversation adds a regulatory dimension to the investment thesis, with Europe's competitiveness hanging in the balance.
What This Means for End Users
For engineers and procurement professionals, the Chips Act 2.0's emphasis on supply chain resilience could translate to more stable lead times for critical components over the medium term. Meanwhile, the AI infrastructure buildout continues to accelerate, with each quarter bringing larger capital commitments from the hyperscalers. On the investment side, September's market conditions favor ETF-based exposure over single-stock bets, though the sector remains sensitive to monetary policy shifts and geopolitical developments affecting the global supply chain.