LONDON: ASML Holding NV forecast better-than-expected first-quarter sales due to strong demand for its advanced chip-making machines, even as export controls threaten growth.
Europe’s largest semiconductor equipment producer has projected sales of 6.1bil euros to 6.5bil euros (US$6.7bil to US$7.1bil or RM28.7bil to RM30.4bil) this quarter, beating the average analyst estimate of 6.07bil euros (RM28.3bil).
The chip sector has been roiled by the United States’ bid to curb exports of leading-edge technology to China, threatening overall demand.
Japan and the Netherlands are poised to agree on new controls on the exports of chipmaking equipment to China, Bloomberg News reported.
ASML has said that demand elsewhere in the world for its most advanced products can make up for any revenue shortfall from China.
“We’re business people. We’re not politicians,” chief executive officer Peter Wennink said in a transcript with the statement.
“We just have to wait for the governments and politicians to keep talking and come to a reasonable solution.”
He added the company expects its sales to grow more than 25% in 2023 and gross margin to improve from the year before.
“Our customers indicate that they expect the market to rebound in the second half of the year,” Wennink said. “Considering our order lead times and the strategic nature of lithography investments, demand for our systems, therefore, remains strong.”
In terms of possible new government restrictions on the sales of its chip-making machines, Wennink said his company had “given up enough” with the pre-existing restrictions on the sales of its extreme ultraviolet lithography machines to China.
The chip-gear maker’s sales were 6.4bil euros (RM29.8bil), in line with analyst estimates, in the three months ended December. Net income was 1.8bil euros (RM8.4bil), above analyst estimates of 1.68bil euros (RM7.8bil). — Bloomberg