Dutch semiconductor giant could only sell 70 units of lithography systems during the quarter
Stff Report
Dubai: Dutch semiconductor giant ASML Holding’s new orders fell short of expectations due to downturn in demand for its most advanced machines from the chip making industry.
Order bookings of Europe’s most valuable technology firm were $3.6 billion in the first quarter of this year compared to $9.2 billion in the fourth quarter of last year, the company said.
ASML expects 2024 total net sales to be similar to 2023.
The company’s net income fell by 38 per cent to $1.22 billion in the first quarter of this year compared to $1.96 billion in the fourth quarter of last year.
“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,” Chief Executive Officer Peter Wennink said in the statement.
“We see 2024 as a transition year with continued investments in both capacity ramp and technology, to be ready for the turn in the cycle.”
Dutch and US export rules meant to stifle Beijing’s chip ambitions have targeted the Veldhoven-based company’s ability to sell cutting-edge equipment to China.
ASML benefited from strong demand from China last year as chipmakers there rushed to get advanced lithography machines ahead of the limits.
The new measures, which fully kicked in on January 1, restrict ASML from selling immersion DUV lithography machines, its second-most capable category of machinery, to China.
ASML has never been able to sell its most advanced extreme ultraviolet machines to China amid pressure from the US government. The company expects as much as 15 per cent of China sales this year will be affected by the new export control measures.
ASML could only sell 70 units of lithography systems during the quarter compared to 100 units in the fourth quarter of last year.
Meanwhile, China is quietly making progress on new techniques to cut reliance on advanced ASML lithography machines and China could make sophisticated 5-nanometre grade chips without the need for more advanced EUV tools sold only by ASML.
Meanwhile, some of ASML’s biggest customers have been posting positive results. Earlier this month, Taiwan Semiconductor Manufacturing Co. said its quarterly revenue grew at its fastest pace in more than a year.
TSMC last week reported a 16.5 per cent rise in first-quarter revenue, beating market expectations and at the high end of the company’s own guidance.
TSMC is set to report a net profit of $6.71 billion for the quarter ended March 31 on Thursday, according to an LSEG SmartEstimate drawn from 22 analysts.
