Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.

Chip’s profit grew by 38%.

Dutch firm ASML makes one of the most important machines needed to produce the world’s most advanced chips. The U.S. chip restrictions have left companies, including ASML, scrambling to figure out what the rules mean in practice.

Emmanuel Doonan | AFP | Getty Images

ASMLone of the world’s top semiconductor equipment companies, reported a jump in revenue and profit in the second quarter, but warned of macroeconomic “uncertainty” ahead.

The Dutch company makes the expensive machinery needed to produce the world’s most advanced chips. Among its customers are giants such as TSMC, the world’s largest contract semiconductor manufacturer.

related investing news


But ASML has also found itself at the center of a technology battle between the US and China because of the importance of the tools it makes.

Here are ASML’s Q2 results compared to Refinitiv’s estimates:

  • Pure sale: 6.9 billion euros ($7.7 billion), compared with expectations of 6.72 billion euros. This represents an increase of 27% compared to last year.
  • Net income: 1.9 billion euros against the expected 1.82 billion euros. This is 37.6% more than last year.

ASML said it expects net sales in the third quarter of this year to be between 6.5 and 7 billion euros.

The company also upgraded its outlook for 2023, now expecting its net sales to grow 30% year-over-year this year, up from previous estimates of 25% growth.

ASML said the best outlook comes from high profits from its deep ultraviolet (DUV) lithography machine, which is used to make memory chips. They are embedded in a variety of devices, from smartphones to laptops to servers, and can ultimately be used for artificial intelligence applications.

However, ASML CEO Peter Wennink warned of macroeconomic uncertainty.

“Our clients in various market segments are currently more cautious due to continued macroeconomic uncertainty and therefore expect a later recovery in their markets. Also, the shape of the recovery slope is still unclear,” Wennink said in a press release.

Companies that design and manufacture the chips that go into end products like smartphones face large inventories of these components. This is because demand for end products such as consumer electronics continues to be weak.

That means chipmakers are slowing down chip production and thus making less use of ASML tools, Venink said in a pre-recorded video interview on the company’s website.

No “significant impact” of export controls from China

ASML has found itself embroiled in US efforts to cut off China from key technologies, including those involved in the production of advanced semiconductors.

Last October, the United States imposed broad restrictions on the export of certain technologies to China that Washington fears could be used in military or artificial intelligence programs. The Biden administration has pressured allied countries to follow suit with similar restrictions.

In June, the Netherlands, where ASML is headquartered, imposed its own export restrictions on advanced semiconductor equipment. Companies will need a license from the government to export certain technologies.

At the time, ASML said the rules were likely to apply to certain DUVs sold by the company.

Although the Dutch government unveiled them in June, they were first published in March and “didn’t come as a big surprise” to Venink.

“In general, if you look at the export control measures as a whole, we don’t expect a significant impact on our 2023,” but also on a longer-term perspective, Venink added.

The CEO said ASML is waiting to see if there will be any further restrictions from the US, amid reports that Washington is considering additional controls on technology exports to China.

Source by [author_name]

Related Articles

Back to top button