(Bloomberg) – ASML Holding NV has given a bullish revenue outlook on strong demand for its advanced semiconductor manufacturing machines and said it will acquire 12 billion euros ($12.2 billion). la) own shares.
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The Dutch chipmaking equipment supplier says growth in the semiconductor market and demand for more advanced manufacturing will drive demand for its products and services, leading to year-over-year revenue. up to €40 billion by 2025. That compares with the average analyst estimate of €32 billion. Shares jumped as much as 10.6% in Amsterdam on Thursday.
ASML’s confidence in long-term growth comes as demand for its customers’ products plummets, prompting many of them to rein in spending on new plants and equipment. The Dutch company says increasing competition in the chip manufacturing sector and efforts in Europe and the US to nurture domestic production are contributing to the industry’s need for more capacity. this.
The company’s acquisition program will last until 2025, it said in a regulatory filing Thursday. It will use about 2 million shares to pay for employee plans and cancel the rest.
ASML’s optimism about the future is growing. Last year, the company predicted sales would be between 24 billion euros and 30 billion euros by 2025. That target is now 30 billion euros to 40 billion euros, it said in the filing. By 2030, revenue will expand further to 60 billion euros, it said.
“While the current macro environment creates uncertainties in the short term, we expect long-term demand and capacity to show healthy growth,” the company said.
Al The key is to burn the samples into material deposited on the silicon wafer. make up the circuits that provide their function to the chip.
Major governments around the world have offered subsidies and incentives to expand domestic chip production capacity to avoid another wave of semiconductor shortages that cost their economies hundreds of billions of dollars in the past year. pandemic period.
Although the global chip industry is currently facing a severe downturn, countries including the US and Japan have not slowed down in preparing new factories to prepare for the next boom cycle. . The Taiwanese semiconductor manufacturing company is currently considering adding another cutting-edge facility in addition to a $12 billion plant under construction in the US state of Arizona.
In early October, Washington announced sweeping regulations to restrict sales of advanced semiconductors and chip-making equipment to China, sending shock waves through the $550 billion industry. . Currently, ASML and other non-US chip manufacturing equipment companies face fewer obstacles when doing business in China.
ASML was unable to sell its most advanced ultraviolet lithography machines to China because the Dutch government refused to give them permission to do so, but it was able to sell its other machines to the country. this. The Dutch company sees the total impact from the new US measures as about 5% of its backlog, the company said on a call with investors in October.
ASML and Tokyo Electron Ltd. of Japan together with three US companies applied materials consortium, Lam Research Corp and KLA Corp. dominate the global semiconductor device manufacturing market.
US officials have said that their latest round of trade restrictions will wear off over time if allies don’t join the campaign. They are also pushing ASML to stop selling immersion lithography to China.
Meanwhile, Dutch Prime Minister Mark Rutte said his government is in talks with Washington, Tokyo, Seoul and the European Commission about restricting Chinese chips. Rutte will visit South Korea next week to discuss technology issues.
ASML CEO Peter Wennink will also travel to the Asian country next week to attend the groundbreaking ceremony of the company’s new research and development facility.
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