News January 24, 2024
Reading time of regarding 2 minutes
Chip machine manufacturer ASML posted a turnover of 27.6 billion euros in 2023, which represents an increase of 30 percent compared to a year earlier. The company from Veldhoven maintains its conservative expectation that a comparable turnover will be achieved this year.
ASML says 2023 was a strong year, but the chip industry is still working through the bottom of the cycle. According to the company, customers remain somewhat uncertain regarding the degree of recovery of the chip market this year, but there are positive signs.
Order intake in the fourth quarter was strong, which ASML believes clearly supports future demand. The order book now stands at 39 billion euros.
Large chip companies are investing in chips for use in the field of AI, which is beneficial for suppliers such as ASML. On the other hand, there is weaker demand for chips for smartphones, for example.
Important year
In a explanation ASML CEO and chartered accountant Peter Wennink states that 2024 will also be an important year to prepare the group for significant growth in 2025. CFO Roger Dassen, also RA, does not rule out that growth will start this year.
Wennink is concerned regarding the Dutch investment climate and hints at possible expansion of ASML outside the Netherlands. The CEO will retire in April and will be succeeded by chief business officer Christophe Fouquet.
The net profit of Europe’s tech company amounted to 7.8 billion euros, compared to 5.6 billion euros a year earlier. The gross profit margin was 51.3 percent, which is slightly higher than a year earlier.
Export restrictions
The company does face export restrictions to the Chinese market by the United States. Washington wants no advanced chip technology to be exported to China to prevent the Chinese from using that technology for military purposes.
The Dutch government has also imposed new restrictions. For example, ASML is now no longer allowed to supply several of its advanced machines to Chinese companies.
Source: ANP
