ASML hits record annual revenue of 27.6 billion euros in turbulent 2023

ASML hits record annual revenue of 27.6 billion euros in turbulent 2023

ASML recently presented its annual figures for the turbulent year 2023. The company posted record sales of 27.6 billion euros. 2024 is expected to be a ‘transition year’.

ASML recorded a total revenue of 27.6 billion euros in 2023, as stated in its annual report for last year. On an annual basis, the revenue is up 30 percent from 2022, although even in 2022, the sales hit a record with a total of 21.2 billion euros.

Interestingly, the number of orders at ASML for chip-making machines increased substantially again in 2023. At the end of 2023, the manufacturer still had 39 billion euros in the backlog. This is because, especially in the last quarter of 2023, the total number of orders placed raised. This quarter alone already held a total amount of 9 billion euros.

Turbulent 2023 due to export restrictions

The past year was a turbulent one for ASML. Mainly because of the export restrictions to China imposed on the company by the United States and the Dutch government. Especially since these have also started to apply to DUV machines. The restrictions have been in place for some time for high-tech EUV chip manufacturing machines.

In addition, the US also intervened in a previously agreed “cooling off period” for the export restrictions, bringing them into effect earlier. As a result, previously issued licenses were again revoked by the Dutch government.

Also read: “ASML scrapped shipments to China under pressure from US”

Still a lot of exports to China

Nevertheless, exports of chip manufacturing machines to Chinese customers were still lucrative. Sales from the second and third quarters of 2023 came mainly from those customers. These were machines already ordered before the export restrictions from 2022 and machines that did not require export licenses.

2024 will be a transition year

For 2024, ASML expects a “transition year”. Although the company already has early signs the demand for chip-making machines will continue to pick up, it holds “conservative” expectations. According to the chip machine giant, this year’s sales will be about the same as this year. In addition, this year will be important to prepare for the strong growth expected for 2025.

Departure of Peter Wennink

The departure of CEO Peter Wennink further fuels the transition year. This comes as his term is coming to an end. He will be succeeded in April by France’s Christophe Fouquet. Fouquet himself has worked at ASML for 15 years.

Een man zit aan een ASML-tafel in een restaurant.

Other changes in the Board of Management include the arrival of a new CTO to replace Martin van den Brink. Van den Brink’s term is also up. In addition, Jim Koomen will be appointed Chief Customer Officer as of April 2024. This is a new position in the day-to-day management of the chip machine giant.

Read more: Dutch government restricts export of ASML chip machines to China