Categories: Economy

Profit for ASML, China buys three times as many chip machines Related articles

Chip machine maker ASML reports net sales of €6.9 billion and net income of €1.9 billion for the second quarter of 2023. An absolute windfall, says market analyst Jean-Paul van eToro’s Oudheusden, and even a little better than management itself had anticipated. In particular, China’s export of chip machines, for which an export license is required in September, tripled from 8% to 24%.

Van Oudheusden does not call it unique, but it is surprising that ASML’s market share in China has increased from 8% in the previous quarter to 24% today. And this above all concerns DUV machines which from September can no longer be exported to China without a permit. So it looks like Beijing is quickly rounding up some cars before it’s too late. (ANP/AFP)

Van Oudheusden does not call it unique, but it is surprising that ASML’s market share in China has increased from 8% in the previous quarter to 24% today. And this above all concerns DUV machines which from September can no longer be exported to China without a permit. So it looks like Beijing is quickly rounding up some cars before it’s too late.

Investments in research and development

The big question is therefore immediately: will profit and turnover decrease from September? According to Van Oudheusden, ASML’s backlog is also fuller than capacity. ASML had 3.6 billion new orders in Q1, now there’s 4.5 billion. Incidentally, it is small compared to last year’s record of 8.5 billion.

“The timing is very surprising”

Jean-Paul van Oudheusden, eToro

What also strikes Van Oudheusden is that while China’s market share has increased, South Korea’s has remained the same and Taiwan’s has decreased slightly. Also of note: Although ASML previously indicated it would suspend hiring new employees due to high inflation, it is now buying over a hundred R&D workers from Philips. “It’s probably been in the works for a long time,” says Van Oudheusden.

Author: Mark VanHarreveld
Source: BNR

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