ASML signals double-digit annual growth as quarterly sales jump

In this news, we discuss the ASML signals double-digit annual growth as quarterly sales jump.

AMSTERDAM (Reuters) – Semiconductor equipment manufacturer ASML Holding NV ASML.AS on Wednesday reported better-than-expected quarterly profit and forecasts double-digit growth for next year on strong final demand for electronics.

The company posted revenue of 3.96 billion euros ($ 4.65 billion) in the third quarter ended September 30, ahead of analysts’ estimates of 3.7 billion euros, and a net profit of 1.06 billion euros. In the third quarter of 2019, ASML achieved a net profit of 627 million euros and a turnover of 3 billion euros.

ASML CFO Roger Dassen forecasted fourth quarter revenue of 3.7 billion euros and said the company expected “double-digit” growth in 2021.

ASML has a virtual monopoly on lithography systems, huge machines that can cost up to $ 200 million each and play a vital role in the manufacture of computer chips, by mapping their circuits.

ASML’s customers include major chipmakers including world market leader Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, followed by Samsung Electronics Co Ltd 005930.KS and Intel Corp INTC.O.

While ASML’s financial performance has not yet been affected by the U.S.-China tensions, it could be affected by a supply lines division for semiconductor production, which is strongly integrated at scale. global.

The Dutch company had already halted plans to sell its most advanced equipment to China after the U.S. government pressured the Netherlands not to grant export licenses under “dual-use” military applications.

Last month, Washington asked U.S. equipment makers to apply for a license to ship any equipment to SMIC, China’s oldest and largest computer chip maker, for military reasons.

New US trade restrictions on the minimum wage mean ASML must now apply for a license to sell even older equipment to China, Dassen said Wednesday.

However, the company raised its forecast for sales to Chinese customers to “just over a billion” in 2020, from around 1 billion euros.

Reporting by Toby Sterling; Edited by Clarence Fernandez and Sherry Jacob-Phillips

Original © Thomson Reuters Corporation

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