ASML Holding NV yesterday raised its full-year sales forecast as the surge in global artificial intelligence (AI) spending fuels semiconductor production and boosts demand for the company’s advanced chipmaking machines.
Net sales will be between 36 billion euros (US$42.4 billion) to 40 billion euros this year, the Dutch company said in a statement. That compares to a previous range of 34 billion to 39 billion euros.
ASML’s customers are racing to ramp up chip production this year to meet demand from big tech companies building out AI capacity. US tech firms have pledged more than half a trillion dollars in capital spending this year, and ASML is the only company that makes the advanced lithography machines that are necessary to produce the cutting-edge semiconductors they need.
Photo: Nicolas Economou, Reuters
“We expect in fact that the supply will not meet the demand for the foreseeable future,” ASML chief executive officer Christophe Fouquet said in a video released with the results. “This is creating a strong constraint in the end markets from AI to mobile and PC.”
The improved outlook was tempered by a weaker-than-expected sales forecast in the second quarter. ASML, Europe’s most valuable company, sees net sales in the second quarter of 8.4 billion to 9 billion euros. That compares to analyst estimates of 9.07 billion euros, according to data compiled by Bloomberg.
To accommodate the boom, ASML customers like chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics. Co are investing in production. TSMC in January announced capital spending of as much as US$56 billion for this year. South Korean chipmaker SK Hynix Inc outlined plans to spend about US$8 billion on ASML’s cutting-edge tools in a deal that runs through next year.
ASML expects to produce at least 60 of its second-most advanced tools, known as low NA extreme ultraviolet (EUV) lithography machines, this year. “We’re increasing our move rate really quarter on quarter,” ASML chief financial officer Roger Dassen said in the video, adding that the company can produce at least 80 low NA EUV units next year.
The toolmaker also faces geopolitical headwinds in China, its largest market last year. US lawmakers this month proposed legislation that would curb sales of all of ASML’s deep ultraviolet (DUV) immersion lithography tools to China and includes banning engineers from servicing tools at certain facilities there.
ASML has never been able to sell its most-advanced EUV tools to China due to US restrictions aimed at curtailing Beijing’s technology advances. The Dutch government imposed export controls on some DUV machines to the country in 2024.
“We expect that the bandwidth in our 2026 guidance accommodates potential outcomes of ongoing discussions around export controls,” Fouquet said.
China accounted for 19 percent of net system sales in the first quarter, down from 36 percent in the previous quarter.
South Korea emerged as ASML’s largest market in the first quarter as the country’s memory makers increase purchases to address chronic shortages stemming from the AI boom.
Shipments of the Dutch company’s chipmaking tools to South Korea surged in the first quarter to 45 percent of net system sales, compared to 22 percent in the preceding three months, while Taiwan was ASML’s second largest market in the quarter.
ASML net sales last quarter rose 13 percent from a year earlier to 8.77 billion euros, meeting analyst estimates. Net income was up 17 percent to 2.76 billion euros.
ENERGY ISSUES: The TSIA urged the government to increase natural gas and helium reserves to reduce the impact of the Middle East war on semiconductor supply stability Chip testing and packaging service provider ASE Technology Holding Co (日月光投控) yesterday said it planned to invest more than NT$100 billion (US$3.15 billion) in building a new advanced chip testing facility in Kaohsiung to keep up with customer demand driven by the artificial intelligence (AI) boom. That would be included in the company’s capital expenditure budget next year, ASE said. There is also room to raise this year’s capital spending budget from a record-high US$7 billion estimated three months ago, it added. ASE would have six factories under construction this year, another record-breaking number, ASE chief operating officer Tien Wu
The EU and US are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China. The two sides are additionally seeking other “like-minded partners” to join a multicountry accord to help create these new critical mineral supply chains, which feed into
For weeks now, the global tech industry has been waiting for a major artificial intelligence (AI) launch from DeepSeek (深度求索), seen as a benchmark for China’s progress in the fast-moving field. More than a year has passed since the start-up put Chinese AI on the map in early last year with a low-cost chatbot that performed at a similar level to US rivals. However, despite reports and rumors about its imminent release, DeepSeek’s next-generation “V4” model is nowhere in sight. Speculation is also swirling over the geopolitical implications of which computer chips were chosen to train and power the new
TECH WINNERS: Taiwan and South Korea reported robust trade, which suggests that they have critical advantages in the rapidly expanding AI supply chain, an official said Exports last month surged to a new high, as booming demand tied to artificial intelligence (AI) infrastructure fueled shipments of advanced technology components, underscoring the nation’s pivotal role in the global semiconductor supply chain. Outbound shipments climbed to US$80.18 billion, the highest ever for a single month, rising 61.8 percent from a year earlier and marking the 29th consecutive month of growth, the Ministry of Finance said yesterday. “The surge was driven primarily by global investment in AI infrastructure,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) said. The mass production of next-generation AI computing systems has accelerated procurement across the semiconductor supply
RSS