ASML Holding NV yesterday forecast better-than-expected first-quarter sales due to robust demand for its advanced chipmaking machines, even as export controls threaten growth.
Europe’s largest semiconductor equipment producer yesterday projected sales of 6.1 billion euros to 6.5 billion euros (US$6.6 billion to US$7.1 billion) this quarter, beating the average analyst estimate of 6.07 billion euros.
The chip sector has been roiled by the US’ bid to curb exports of leading-edge technology to China, threatening overall demand.
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Japan and the Netherlands are poised to agree on new controls on exports of chipmaking equipment to China.
ASML has said that demand elsewhere in the world for its most advanced products can make up for any revenue shortfall from China.
“We’re businesspeople. We’re not politicians,” ASML CEO Peter Wennink said in a transcript with the release. “We just have to wait for the governments and the politicians to keep talking and come to a reasonable solution.”
He added that the company expects its sales to grow more than 25 percent this year and gross margin to improve from last year.
“Our customers indicate that they expect the market to rebound in the second half of the year,” Wennink said. “Considering our order lead times and the strategic nature of lithography investments, demand for our systems therefore remains strong.”
In terms of possible new government restrictions on the sales of its chipmaking machines, Wennink said his company has “given up enough” with the existing restrictions on the sales of its extreme ultraviolet lithography machines to China.
The Dutch chip gear maker’s sales were 6.4 billion euros, in line with analyst estimates, in the three months ended last month. Net income was 1.8 billion euros, edging out an analyst estimate of 1.68 billion euros.
The company continued to delay recognition for some deals to speed up delivery.
ASML in November last year said it targets sales of as much as 40 billion euros by 2025 and as much as 60 billion euros by 2030.
The company is one of the very few producers of the sophisticated lithography machines needed to make mid-grade semiconductors, and the manufacturer of an one-of-a-kind piece of equipment needed to make the most cutting-edge chips.
ASML reported net sales of 21.2 billion euros for last year with a gross margin of 50.5 percent.
The company last year shipped 317 lithography machines, up from 286 units in 2021.
ASML shares rose 22 percent since the start of the year as of the close of trading on Tuesday.
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