ASML receives fewer orders

ASML receives fewer orders, but turnover continues to rise

For the third quarter in a row, manufacturers placed fewer orders with chip machine maker ASML than in the same period a year earlier. The number of orders is slightly higher than at the beginning of this year. In addition, turnover and profit are still growing.

At 6.9 billion euros, turnover was still 1.5 billion euros higher than in the same period last year. Orders amounted to 4.5 billion euros last quarter, compared to 8.4 billion euros in the same period last year. This means that ASML’s customers – such as Intel, Samsung and TSMC – are currently ordering fewer new machines. This has everything to do with the decrease in demand for consumer electronics, for example.

ASML has also adjusted its turnover forecast for this year upwards. The company initially assumed a growth of 25 percent, now of 30 percent. This is because the demand for DUV machines (Deep Ultraviolet), the older types of machines, is higher than expected and ASML has been able to record sales of these machines earlier in the books.

More cautious due to economic uncertainty

In the accompanying statement, CEO Peter Wennink says that customers in various markets are currently “more cautious due to economic uncertainty”. He also emphasizes that with an order list of around 38 billion euros, the company has “a good basis” to navigate this “short-term uncertainty”.

Where it was previously expected that the market would recover in the second half of this year, Wennink now expects it to take longer. He also thinks it is too early to say what next year will look like. The years after 2024 look very “solid” again, because the demand for chips for, for example, AI (artificial intelligence), the energy transition and the electrification of transport is expected to continue.

ASML is an essential player in the global chip sector. This is due to the company’s machines, which are very important in the production of computer chips.

However, that also ensures that ASML is part of the geopolitical technology battle between the US and China. Made last month the Dutch cabinet additional export restrictions known for certain types of DUV machines. ASML already indicated at the time that this would not have a major financial impact.

In this morning’s message, Wennink reiterates that the impact is limited. “We are still waiting for the precise measures from the US, but we do not expect them to have a huge impact on our results for this year and for the longer term.”

Hired 10,000 employees

Last year ASML grew enormously worldwide with 10,000 new employees to a total of 40,000. The company says it is now taking it easy and taking a ‘break’. It wants to take the time to familiarize all those new colleagues, especially because in many cases it can involve familiarizing themselves with complex technology.

In practice, this means that the pace at which ASML hires new employees is decreasing. Worldwide there are just under 500 vacancies, in the Netherlands there are 178 vacancies.

Incidentally, a hundred employees of Philips’ research lab transferred to ASML this week, discovered the FD. These are people who have previously worked for ASML from Philips and are now making the switch, says a spokesman.

For the sake of chips, the EU wants to break open its own rules if necessary