Intel (INTC, Financials), the chipmaker known for PC processors, server chips and semiconductor manufacturing, has started using ASML's newest lithography system in commercial production.

The company is applying High NA EUV technology to selected layers of its Intel 18A process, which is being used for some Core Ultra Series 3 processors.

That matters because High NA EUV can print smaller and more precise patterns on chips. In practical terms, it gives manufacturers another tool for building faster and more efficient processors.

Intel said the technology has been qualified at its Oregon facility, with production yields matching those of ASML's current EUV platform.

ASML, the Dutch company that makes the world's most advanced chipmaking equipment, called the milestone an important step toward wider adoption of High NA EUV.

The update also highlights the long partnership between the two companies. Intel has been one of the earliest users of ASML's next-generation equipment.

For investors, the next question is whether Intel can use the technology to improve yields and regain ground in advanced chip manufacturing.