ASML Sets New Closing Record As Orders for High-End Chip Machines Skyrocket

(Bloomberg) — ASML Holding NV achieved a record high closing as its orders more than tripled in the last quarter, signaling a resurgence in parts of the semiconductor industry. Order bookings surged to a record €9.19 billion ($9.98 billion) in the fourth quarter from €2.6 billion in July to September, propelled by demand for its most advanced machines, the company said on Wednesday. Shares ended the day with an increase of 9.7% to reach a record €775.80 in Amsterdam. ASML is the sole producer of the equipment required to manufacture the most sophisticated semiconductors, and demand for its products serves as an indicator of the industry’s well-being. The notable increase in orders for its top-of-the-line extreme ultraviolet lithography machines reflects optimism among major customers for the technology, such as Intel Corp., Samsung Electronics Co., and Taiwan Semiconductor Manufacturing Co. According to CEO Peter Wennink, artificial intelligence, which demands substantial computing power, is expected to significantly drive the company’s business as well as that of its customers. While some chipmakers are growing more optimistic about the sector’s outlook following a slump attributable to the Covid-19 pandemic, demand in other segments of the industry remains weak. ASML’s bookings last quarter markedly exceeded analysts’ average estimate of €3.6 billion. The company also experienced strong demand from China in the past year, as chipmakers in the country hurried to acquire lithography machines prior to Dutch export restrictions meant to impede Beijing’s semiconductor ambitions. This rise in Chinese demand helped offset the impact of a global chip industry downturn on ASML. The company expects approximately 15% of its sales to China this year to be affected by new export control measures.

Author: OpenAI