ASML China sales dip in Q1 but seen stronger next nine months

Following a decline in the first quarter, Dutch semiconductor equipment manufacturer ASML Holding NV (ASML.AS) anticipates mainland China sales to increase for the balance of 2023.

Roger Dassen, the organization’s vice president of finance, made the comments after the first quarter results were better than anticipated.

Sales of ASML in the Mainland After Taiwan and South Korea, China is its third-largest market, and it has been the focus of a prominent geopolitical power struggle. Beijing’s ability to produce cutting-edge computer chips is being undermined by Washington in an effort to stifle its military and technical advancements.

This necessitates limiting the export of certain ASML equipment since it may have “dual use” military applications. On March 8, the Dutch government said that it would follow the U.S. lead and establish new regulations prohibiting the sale of certain ASML equipment by this summer.

Dassen reaffirmed that would have an impact on a portion of possible exports to the mainland of China, but the demand from chip manufacturers who produce somewhat older chips is still high.

Despite a drop in first quarter sales to roughly 8% of the company’s total, he claimed in a statement that went along with the earnings that “Domestic China accounts for more than 20% in our backlog.”

Therefore, for the upcoming quarters of this year, sales into domestic China will significantly increase.

(The spelling of the finance chief in this article has been changed from Daasen to Dassen.)

Toby Sterling provides reporting Mark Potter does the editing
The Thomson Reuters Trust Principles serve as our benchmarks.

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