ASML expects 25% sales growth despite US-China tensions

ASML clean room where the euv machine is assembled. Photo: ASML

Feldhoven-based chip technology company ASML expects sales to grow 25% this year despite declining demand and pressure from the US to restrict trade with China.

ASML posted sales of €21.2 billion in 2022 and €6.4 billion in the final quarter, representing a 14% year-on-year increase in sales. We expect to achieve similar numbers in the first quarter of 2023 before recovering in the second half of 2023.

CEO Peter Wennink He said the recent drop in demand had little impact on the company’s business. Because it builds the machines used by chip producers, and production will take longer than the expected length of the recession.

ASML’s profit fell slightly from €5.9 billion in 2021 to €5.6 billion last year, but the company increased its dividend by 5.5% to €5.80 per share.

ASML was the subject of a meeting between Prime Minister Mark Rutte and US President Joe Biden during Rutte’s visit to Washington last week.

The United States has been pressuring the Netherlands to comply with its policy of blocking the sale of chips that could be used for military purposes to China, but the Netherlands is reluctant to comply. 15% of ASML exports go to China.