The Dutch holding is still the largest supplier of advanced lithographic scanners that are used in the manufacture of semiconductor chips. Last quarter, the company generated €6.43 billion in revenue and posted a net profit of €1.82 billion, beating analysts’ expectations. ASML management anticipates a 25% rise in revenue for the next year.
Peter Wennink, ASML CEO, stated that such optimism can be attributed to customers’ strategic investments in lithographic machinery, as well as timid hopes for a recovery within the Chinese economy. ASML management says that the current company’s business is not affected by the discussed bans on certain types of equipment being supplied to China. ASML is still able to supply deep ultraviolet (DUV), lithography equipment for China, and was not affected by US sanctions in Oct. Secondly, as Wennink noted, in relation to more advanced EUV equipment, all the risks are “long taken into account”, since the ban on its supply to China has been in effect for several years.
“We are businessmen, we are not politicians. We have to wait until governments and politicians reach some kind of agreement and come to a reasonable solution.” The head of the company spoke out about the situation, and said that new export restrictions were likely to be implemented. ASML ended last year with a €40 billion order book, which is a record, so management has every reason to believe that revenue will grow by 25% at the end of this year. Profit margins will improve as well, as they will be higher than last year, when ASML, like many other companies, faced a shortage in components.
According to Wennink, ASML customers expect the market will pick up in the second quarter of this year. “Given our long supply cycles and the strategic nature of our investments in lithography, demand for our systems remains strong,” The head of ASML explained. ASML’s head explained that the demand for its products is currently higher than its production capabilities. In November, the company stated that it plans to increase its revenue to 40 billion euro by 2025 and 60 billion euros in 2030. The company had revenues of 21.2 million euros last year, but contracts meant that its recognition was delayed by a change in strategy for equipment supply and installation. ASML shipped 317 digital lithographer scanners in 2022, as opposed to 286 a year ago. She anticipates that she will see an increase of between 6.1 and 6.7 billion euro in the current quarter.