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Semiconductors
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ASML chip-making equipment sales fall as China rushes to secure tools ahead of widened US export controls

  • The lithography equipment maker saw order bookings fall 42 per cent to US$2.8 billion in July through September from the previous quarter
  • Chinese chip makers have boosted orders ahead of looming export controls to make up 46 per cent of ASML’s sales in the third quarter

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The ASML logo displayed on a smartphone in this illustration taken February 28, 2022. Photo: Reuters
Bloomberg
ASML Holding’s order intake plunged in the third quarter amid a sector-wide slump in the semiconductor industry, helping propel sales in China to nearly half of its revenue in the period.

Order bookings fell 42 per cent to €2.6 billion (US$2.8 billion) in July through September from the previous quarter, Europe’s most valuable technology company said in a statement on Wednesday. That compares with an average estimate of €4.5 billion among analysts polled by Bloomberg.

While ASML maintains a sizeable order backlog, the semiconductor industry has been experiencing a slowdown after inflation and recession fears hit consumer spending. Sales at Taiwan Semiconductor Manufacturing Co, ASML’s biggest customer, dropped 11 per cent in the third quarter, according to Bloomberg calculations. Earlier this year, ASML said it plans to slow hiring amid the downturn.

“The macroeconomic situation has not improved,” chief executive officer Peter Wennink said in a video interview on the results. “We still see relatively high inflation rates, high interest rates, some fear of recession in Europe, in the US,” he said. “The geopolitical environment is also difficult from time to time.”

ASML, which is the only producer of the lithography equipment needed to make the most advanced semiconductors, has experienced a jump in business from China this year as chip makers there boosted orders ahead of looming export controls.

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