FILE PHOTO: ASML headquarters is seen in Veldhoven, Netherlands August 30, 2018. REUTERS/Piroschka van de Wouw/File Photo
(Reuters) - ASML's deep forecast cuts that sparked a global tech stock selloff signal overcapacity at chip factories rather than a slowdown in global semiconductor demand, analysts said.
While the weaker 2025 sales outlook from the chip equipment maker on Tuesday raised fears of faltering global semiconductor demand, several analysts pointed to inventory build-ups at chip factories that stocked up on ASML's expensive tools during the pandemic and have become better at using them to produce a larger number of chips.
