The Dutch company ASML makes one of the most important pieces of machinery needed to produce the world's most advanced chips. US chip restrictions have left companies, including ASML, struggling to figure out what the rules mean in practice.
Emmanuel Dunand | AFP | Getty Images
ASML, one of the world's most important semiconductor equipment companies, beat sales and profit expectations but said revenue for this year would be similar to 2023.
Here's how ASML compared to LSEG's consensus estimates:
- Net sales: 7.2 billion euros ($7.82 billion) versus expected 6.9 billion euros
- net profit: 2.05 billion euros compared to 1.86 billion euros expected
ASML previously said it expects net sales for the fourth quarter to be between €6.7 billion and €7.1 billion, with a gross margin of between 50% and 51%.
Net sales increased 12.5% year over year in the fourth quarter, while the company reported a gross margin of 51.4% in the fourth quarter.
ASML expects net sales of between 5.0 and 5.5 billion euros for the first quarter.
“We maintain our conservative view for the full year and expect sales in 2024 to be similar to 2023. We also expect 2024 to be an important year in preparing for significant growth, which we expect in 2025,” ASML CEO Peter Wennink said in a statement on Wednesday.
ASML reported sales of 27.6 billion euros for 2023, more than the previous year's 21.2 billion euros. This was an increase of 30% compared to the previous year.
ASML, a Dutch company that makes a machine needed to make the world's most advanced chips, has found itself caught in the broader technology battle between the U.S. and China.
Following pressure from the United States, the Dutch government introduced restrictions on the export of advanced semiconductor equipment in June. And in October, the U.S. tightened its own export controls on advanced semiconductors and chip-making tools to China.
This month, ASML said the Dutch government had partially revoked its license to supply its NXT:2050i and NXT:2100i lithography systems to China in 2023. These are systems required to produce less advanced chips.
In a pre-recorded video released Wednesday, ASML Chief Financial Officer Roger Dassen said the company does not expect to receive export licenses for the NXT:2000i and more advanced machines. Dassen also said it is believed that some Chinese chip factories will not receive export licenses for the NXT:1970i and NXT:1980i immersion tools.
ASML had previously said export restrictions would impact 10% to 15% of China sales. There will be similar effects in 2024, said Dassen.
ASML's cutting-edge tools, so-called extreme ultraviolet lithography machines, have never received an export license. To date, ASML has not delivered any of these machines to China.