ASML researchers have developed a breakthrough that could increase chip production by 50% by the end of the decade. The Dutch company's new extreme ultraviolet (EUV) light source technology boosts power from 600 watts to 1,000 watts, enabling chipmakers to produce more advanced processors at lower costs.

The advancement comes as ASML faces growing competition from Chinese and American rivals. The company's EUV machines are critical for producing advanced computing chips, with the technology so vital that U.S. governments have worked with Dutch leaders to prevent exports to China. At least two U.S. startups, Substrate and xLight, have raised hundreds of millions of dollars to develop competing technologies.

ASML's new system doubles the number of tin droplets to 100,000 per second and uses two laser bursts instead of one to shape them into plasma. This generates EUV light with a wavelength of 13.5 nanometers. The company expects its machines will process about 330 silicon wafers per hour by 2030, up from 220 currently. ASML executives say the techniques used to achieve 1,000 watts provide a clear path toward 1,500 watts and potentially 2,000 watts in the future, ensuring the company maintains its technological edge in semiconductor manufacturing.