(Bloomberg) — ASML Holding NV’s new orders fell short of analysts’ expectations, hurt by slowing demand for its most advanced machines in the chipmaking industry.
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Order intake at Europe’s most valuable technology company came in at 3.6 billion euros ($3.8 billion) in the first quarter, the company said, compared with an average estimate of 4. 63 billion euros by analysts surveyed by Bloomberg. In the fourth quarter, bookings reached a record level of 9.19 billion euros.
“Our outlook for the full year 2024 remains unchanged, with the second half expected to be stronger than the first, in line with the sector’s continued recovery from the economic downturn,” CEO Peter Wennink said in the release. “We view 2024 as a year of transition. »
ASML is the world’s only producer of equipment needed to make the most advanced chips that power everything from smartphones to sophisticated military equipment. Dutch and U.S. export rules intended to stifle Beijing’s chip ambitions have targeted the Veldhoven-based company’s ability to sell cutting-edge equipment to China.
ASML benefited from strong demand from China last year, as chipmakers rushed to get advanced lithography machines ahead of the limits. The new measures, which came into full effect on January 1, prevent ASML from selling DUV immersion lithography machines, its second highest-performing machine category, to China.
ASML was never able to sell its most advanced extreme ultraviolet machines to China under pressure from the US government. The company expects up to 15% of its sales in China this year to be affected by the new export control measures.
Meanwhile, some of ASML’s largest clients have shown positive results. Earlier this month, Taiwan Semiconductor Manufacturing Co. said its quarterly revenue grew at its fastest pace in more than a year.
ASML commercial director Christophe Fouquet will take over when Wennink retires later this month. He will have to balance American geopolitical pressure while trying to satisfy shareholders accustomed to growth. Over the course of a decade under Wennink, shares rose nearly 1,400%.
ASML reiterated that expected sales this year will be similar to those in 2023.
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