THE HAGUE, Netherlands: Surging demand for artificial intelligence drove Dutch semiconductor equipment maker ASML to a record profit last year, even as the company announced plans to cut about 1,700 jobs to streamline operations.

ASML reported net profit of 9.6 billion euros (US$11.5 billion) in 2025 on sales of 32.7 billion euros, the strongest financial performance in its history. At the same time, the company said it would reduce its workforce by roughly four percent.

The results come despite Dutch government restrictions on exports of advanced chipmaking machines that could be used to produce chips for weapons systems. The controls, first announced in 2023 and later expanded, are widely seen as aligning with a U.S. strategy to curb China's access to cutting-edge semiconductor technology.

"In the last months, many of our customers have shared a notably more positive assessment of the medium-term market situation, primarily based on more robust expectations of the sustainability of AI-related demand. This is reflected in a marked step-up in their medium-term capacity plans and in our record order intake," ASML President and Chief Executive Officer Christophe Fouquet said in a statement.

In a separate message to employees, the company said the job cuts were aimed at making ASML more efficient and agile. It said the company was "choosing to make these changes at a moment of strength for the company. Improving our processes and systems will allow us to innovate more and innovate better, generating further responsible growth for ASML and our stakeholders."

ASML said the reductions are intended to sharpen its focus on engineering and innovation by streamlining its technology and information technology departments.

The company is a critical supplier to the global semiconductor industry, producing the highly complex machines used to manufacture the world's most advanced chips. Its extreme ultraviolet, or EUV, lithography systems are essential for leading-edge chip production and are in robust demand as chipmakers expand capacity to support AI applications.

Looking ahead, ASML said it expects 2026 to be "another growth year for ASML's business," primarily driven by continued demand for its EUV systems.