The Chinese market share of 39% of total revenue announced at ASML’s recent quarterly earnings call is not a unique phenomenon for this lithography scanner provider. Statistics from American Lam Research say Chinese customers accounted for 40% of sales last quarter.
resource South China morning post Traced the dynamics of sales of the American supplier of equipment for etching silicon wafers Lam Research to China and found that in the second quarter of last year this area accounted for 26% of the company’s total sales, in the third quarter the share of China grew to 48% and became in fourth limited to 40%. Notably, China and South Korea were equally important to Lam Research a year ago, each accounting for 22% of the company’s revenue. Subsequently, China’s influence only increased, as South Korea generated just 19% of the company’s revenue in the fourth quarter and Japan came in third with 14%.
As previously reported, ASML derived 39% of its revenue from China in the last quarter, ensuring China’s superiority over Taiwan, Japan and South Korea. China’s share of the Dutch manufacturer of lithography equipment’s sales structure was also higher in the third quarter than in the fourth, reaching 46%. It can be argued that the tightening US sanctions are affecting the dynamics of lithography equipment shipments to China, and this happened just last fall. For the full year 2023, the share of ASML’s revenue generated in China increased from 14% to 29% compared to 2022. Last year, as AMSL management clarifies, the company had to fulfill orders placed by the end of 2022.
Separately, Chinese customs statistics showed that China received 47% fewer lithography systems from the Netherlands from September to December and the value of imports fell 72% to $58.8 billion. At the same time, shipments of equipment for cleaning silicon wafers to China increased by 667% to $3.85 billion, so one-sided trends cannot be said.
Analysts note, that the growth of ASML’s total sales based on the results of the last quarter largely reflects the situation in the HBM memory market, as its manufacturers, against the background of the boom in artificial intelligence systems, rushed to actively increase production volumes and purchase equipment. In this case, the release of HBM requires EUV scanners, which bring large revenues to ASML due to their high cost.