ASML will repurchase €12 billion of its own shares between now and 2025. The share price rose 9.7 percent after the announcement.
The Dutch giant shared the news ahead of an investor meeting. In addition to the buyback program, ASML predicted revenue of €30 billion to €40 billion by 2025. The previous forecast was €24 billion to €30 billion.
ASML is one of the world’s largest chip production equipment manufacturers. The organization receives more orders than it can handle. In a statement to investors, ASML said its capacity is continuously being expanded.
“While the current macro environment creates near-term uncertainties, we expect longer-term demand and capacity showing healthy growth”, the organization noted. The stock price jumped after the announcement. At the time of the Amsterdam Stock Exchange’s closing, the share price was up 9.7 percent (€544.20).
ASML expects sales to continue to grow after 2025. The organization forecasts sales of €44 billion to €60 billion by 2030. ASML dominates the market for lithography systems. The machines are used to map the circuitry of chips.
The most modern products on offer are extreme ultraviolet (EUV) machines. The systems cost about €200 million each. ASML currently produces about 60 EUV machines a year. The organization expects production capacity to rise to 90 systems by 2026.
ASML sells to the world’s largest technology companies, including TSMC, Samsung, SK Hynix, Intel and Micron. Trade with Chinese firms declined in recent months. The United States is pressuring ASML to limit sales to Chinese customers. The government claims China’s technological growth is a threat to national security.