Dutch tech giant ASML Holding NV posted new orders that fell short of analyst expectations, hurt by a downturn in demand for its most advanced machines from the chipmaking industry.
Bookings at Europe’s most valuable technology firm were 3.6 billion euros (US$3.8 billion) in the first quarter of the year, compared with a record 9.19 billion euros in the previous quarter.
Net profit came in at 1.2 billion euros in the first quarter, compared with 2 billion euros in the fourth quarter of last year.
Photo: Reuters
ASML, the world’s sole producer of equipment needed to make the most advanced chips, saw a slump in demand for its top-end extreme ultraviolet (EUV) machines, with orders plunging to 656 million euros in the period from 5.6 billion euros in the previous quarter.
Overall sales in the first quarter came in at 5.3 billion euros, lower than the 7.2 billion euros from the previous quarter, but in the range the company had forecast. The company is expecting sales of between 5.7 billion euros and 6.2 billion euros in the second quarter before demand starts to pick up.
“Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry’s continued recovery from the downturn,” ASML chief executive officer Peter Wennink said in a statement yesterday. “We see 2024 as a transition year.”
ASML chief business officer Christophe Fouquet is to take over as CEO when Wennink retires later this month.
ASML chief financial officer Roger Dassen said investors should bear in mind that combined orders over the past two quarters amounted to 13 billion euros — “a pretty significant number.”
“I think it’s pretty clear that the industry is in its upturn,” Dassen said in the statement. “We will see recovery for the industry in 2024 and that we are building up for a stronger year in 2025.”
While the company was hit by weakness in Taiwan and the US — ASML’s biggest market for EUV machines — its China business remained relatively resilient. Sales there were 1.9 billion euros in the first quarter, down from 2.2 billion euros in the previous period, while the percentage of sales to China rose to 49 percent from 39 percent in the fourth quarter of last year.
The semiconductor industry has become a geopolitical battleground as the West seeks to restrict China’s access over fears the chips could be used for advanced weaponry, with Dutch and US export rules targeting the Veldhoven, Netherlands-based company’s ability to sell cutting-edge equipment to China.
ASML has never been able to sell its EUV machines to China amid pressure from the US government. The company expects as much as 15 percent of China sales this year to be affected by the new export control measures.
Additional reporting by AFP
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
RSS