ASMLs revenue is exceeding expectations and set to grow another

ASML’s revenue is exceeding expectations and set to grow another 25% this year

The Dutch holding remains the main supplier of advanced lithography scanners used in semiconductor chip production. In the past quarter, the company posted sales of 6.43 billion euros and net income of 1.82 billion euros, beating analysts’ expectations. ASML’s management expects sales to increase by 25% for the current year.

    Image source: Intel

Image source: Intel

According to ASML CEO Peter Wennink (Peter Wennink), such optimism is possible due to the strategic nature of customers’ investments in lithographic equipment, as well as timid hopes for a recovery of the Chinese economy. According to ASML management, the additional supply bans for certain types of equipment to China currently under discussion have no impact on the company’s business. First, ASML is still able to ship deep ultraviolet (DUV) lithography equipment to China and has not yet been affected by the US sanctions in October. Secondly, according to Wennink, with more advanced EUV devices, all risks have “long been taken into account” since the ban on deliveries to China has been in effect for several years.

“We are businessmen, we are not politicians. We have to wait until governments and politicians agree and come to a reasonable solution.” – The head of the company described the situation with the expectation of the introduction of new export restrictions. ASML ended last year with an order backlog of €40 billion, a record that gives management every reason to believe that revenue will be up 25% by the end of this year. Along the way, profit margins will also improve compared to last year when ASML and many other companies faced component shortages in their purchasing costs.

According to Wennink, ASML customers expect the market to revive in the second half of the year. “Given our long delivery cycles and the strategic nature of our investments in lithography, demand for our systems remains strong,” – explained the head of ASML. Demand for the company’s products now exceeds its production capacity. The company announced in November that it would increase sales to EUR 40 billion by 2025 and EUR 60 billion by 2030. It ended last year with a turnover of 21.2 billion euros, but contractually its recognition had to be postponed due to a change in strategy in the supply and installation of equipment. ASML shipped 317 lithography scanners in 2022, up from 286 in the previous year. In the current quarter, she expects a profit of 6.1 to 6.7 billion euros.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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