Updates to add 16% increase to 2026 revenue forecast, ASML capacity expansion plans in paragraphs 1, 3-4, 7.

By Toby Sterling and Nathan Vifflin

July 15 (Reuters) - ASML ASML.AS, the world's biggest supplier of equipment used to manufacture computer chips, on Wednesday raised its financial forecasts for 2026 and said it would expand capacity after reporting better-than-expected second-quarter earnings, driven by artificial intelligence demand.

ASML said it now expects full-year 2026 net revenue of 43-45 billion euros, an increase of 16% at the midpoint from its earlier forecast range of 36-40 billion euros.

Revenue for the three months ended June 30 was 9.33 billion euros ($10.90 billion), topping analysts' estimates of 8.80 billion euros, while net income was 2.92 billion euros, above expectations of 2.62 billion euros, according to LSEG data.

Chief Executive Christophe Fouquet flagged "extremely strong" order intake due to demand for AI chips.

"Our customers in turn continue to accelerate their capacity expansion plans (...) providing ASML with increased visibility into longer-term demand," Fouquet said in a statement.

The Dutch company is the only maker of extreme ultraviolet lithography (EUV) tools, which are needed to make cutting-edge chips. Customers including TSMC 2330.TW, Samsung 005930.KS, SK Hynix 000660.KS and Micron MU.O are racing to add capacity for AI-related demand.

ASML said it intends to expand capacity for its flagship EUV tools, as well as for deep ultraviolet (DUV) tools needed for less advanced chips and by customers in China, by 30% in each of the coming two years.

Separately, Fouquet said Intel INTC.O will use ASML's new High-NA tool to make some of its most advanced "Panther Lake" chips, marking a first for the technology.