Connect with us

Company News

ASML beats estimates but sees some chipmaker caution

ASML Holding NV (ASML.AS) beat first-quarter earnings forecasts on Wednesday on continued strong demand for its chip making equipment, but noted some signs of caution among customers.

The comments from Europe’s biggest tech firm follow news that Samsung (005930.KS) will cut production because of a downturn in semiconductor demand, while memory chip makers SK Hynix (000660.KS) and Micron (MU.O) have cut spending plans.

“Overall demand still exceeds our capacity for this year and we currently have an (order) backlog of over 38.9 billion euros,” CEO Peter Wennink said in a statement.

ASML plays a key role in the semiconductor industry because it dominates the market for lithography equipment used to create the minute circuitry of chips.

It has struggled to meet demand as customers TSMC (2330.TW), Samsung and Intel (INTC.O) spend billions on expansion.

“In our opinion, neither 2023 or 2024 estimates at the company are at risk,” JPMorgan said in a note.

ASML shares were down 2.5% to 574.00 euros at 0800 GMT, but are up more than 10% year-to-date.

The company kept a forecast for 25% sales growth this year, with sales of 6.5-6.7 billion euros in the second quarter.

Finance chief Roger Dassen said some major companies were “delaying the timing of their demand for certain tools” but others were taking their orders.

“For memory customers, we do see them limiting their capex … (and) we see some of that behaviour also in certain segments of logic,” he said, referring to the two largest categories of computer chips. Reuters

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!