ASML Holding NV (NASDAQ:ASML) shares are trading higher Wednesday amid reports that the company plans to supply its latest high-NA extreme ultraviolet chip machines to Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and Samsung Electronics Co in 2024.
By the end of the year, all three major customers were included Intel Corp (NASDAQ:INTC), will receive these advanced machines.
Intel already received the first shipment for its factory in Oregon in December, ASML CFO Roger Dassen quotes.
ASML’s new machines, which can print semiconductor lines as thin as 8 nanometers, will support AI applications and advanced electronics. Despite TSMC’s concerns about the price of approximately $381 million (350 million euros), demand remains strong.
Analysts at Jefferies predict that ASML orders will average $6.21 billion (5.7 billion euros) per quarter for the rest of the year, potentially pushing sales to 40 billion euros by 2025. They expect TSMC to use high-NA at the A14 junction in 2028.
ASML expects a more robust recovery in demand in the second half of the financial year.
It expects the US chip embargo to affect up to 15% of its sales to China by 2024.
TSMC’s plan to raise prices for its chip manufacturing services also caused the broader sector to fall on Tuesday.
ASML shares have risen 35% in the past twelve months. Investors can gain exposure to the stock through VanEck Semiconductor ETF (NASDAQ:SMH) and iShares Semiconductor ETF (NASDAQ:SOXX).
Price promotions: ASML shares were trading 6.58% higher at $1,013.41 at last check on Wednesday.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
Photo via ASML
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This article What is going on with the Taiwanese semi-supplier ASML on Wednesday? originally appeared on Benzinga.com
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