China Accounts for Nearly Half of ASML’s Q2 Revenue Despite Export Restrictions
ASML reported second-quarter net sales of 6.24 billion euros, exceeding expectations despite a 7.6% year-on-year decline. Mainland China remained the company's largest market, contributing 49% of total net system sales, driven by strong demand for unrestricted deep ultraviolet (DUV) lithography equipment. This surge in Chinese demand offset the impact of Dutch export restrictions implemented in late 2023. While quarterly revenue rose 18% from the previous period, ASML shares dropped 13% following reports that the US is considering stricter export controls on chip-making technology to China. CFO Roger Dassen noted gross margins reached 51.5%, aided by higher immersion system sales. CEO Christophe Fouquet stated that semiconductor inventory levels are improving and maintained the full-year revenue outlook. The results highlight the resilience of Chinese demand amidst ongoing geopolitical tensions and regulatory hurdles affecting the global semiconductor supply chain. The company expects next quarter's sales to range between 6.7 billion and 7.3 billion euros.
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China Accounts for Nearly Half of ASML’s Q2 Revenue Despite Export Restrictions
ASML reported second-quarter net sales of 6.24 billion euros, exceeding expectations despite a 7.6% year-on-year decline. Mainland China remained the company's largest market, contributing 49% of total net system sales, driven by strong demand for unrestricted deep ultraviolet (DUV) lithography equipment. This surge in Chinese demand offset the impact of Dutch export restrictions implemented in late 2023. While quarterly revenue rose 18% from the previous period, ASML shares dropped 13% following reports that the US is considering stricter export controls on chip-making technology to China. CFO Roger Dassen noted gross margins reached 51.5%, aided by higher immersion system sales. CEO Christophe Fouquet stated that semiconductor inventory levels are improving and maintained the full-year revenue outlook. The results highlight the resilience of Chinese demand amidst ongoing geopolitical tensions and regulatory hurdles affecting the global semiconductor supply chain. The company expects next quarter's sales to range between 6.7 billion and 7.3 billion euros.
TechNode