(Bloomberg) — ASML Holding NV’s new orders fell short of analysts’ expectations, hurt by a drop in demand for its most advanced machines from the chip industry.
Most read from Bloomberg
Order bookings at Europe’s most valuable technology company reached €3.6 billion in the first quarter, the company said, compared with an average estimate of €4.63 billion by analysts polled by Bloomberg. Bookings in the fourth quarter amounted to a record €9.19 billion.
“Our outlook for full-year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the sector’s continued recovery from the recession,” CEO Peter Wennink said in the statement. “We see 2024 as a transition year.”
ASML is the world’s only manufacturer of equipment needed to create the most advanced chips that power everything from smartphones to advanced military equipment. Dutch and US export rules, aimed at stifling Beijing’s chip ambitions, have targeted the Veldhoven-based company’s ability to sell advanced equipment to China.
ASML benefited from strong demand from China last year, as chipmakers there rushed to get advanced lithography machines ahead of the cap. The new measures, which came into full effect on January 1, restrict ASML from selling immersion DUV lithography machines, the second most capable category of machines, to China.
ASML has never been able to sell its most advanced extreme ultraviolet machines to China, due to pressure from the US government. The company expects as much as 15% of Chinese sales this year to be affected by the new export control measures.
Meanwhile, some of ASML’s largest customers have seen positive results. Earlier this month, Taiwan Semiconductor Manufacturing Co. said. that quarterly sales grew at the fastest pace in more than a year.
Christophe Fouquet, Chief Business Officer of ASML, will take over as CEO when Wennink retires later this month. He will have to balance US geopolitical pressure while trying to please shareholders accustomed to growth. During a decade under Wennink, shares rose by almost 1,400%.
ASML reiterated that expected sales this year will be comparable to those in 2023.
Most read from Bloomberg Businessweek
©2024 BloombergLP
