Even in the unlikely event that all exports to China are prohibited, ASML expects to stay on course, CEO Peter Wennink suggested at a recent investor meeting.
ASML is one of the world’s largest chip production equipment manufacturers. The company’s machines allow customers to fabricate chips. The United States regularly pressures ASML to limit sales to Chinese customers. According to the United States, China’s technological growth is a threat to international security.
Export bans prohibit ASML from selling EUV machines to Chinese customers. EUV machines are the most modern systems on offer. Older systems can still be sold. Although the United States is lobbying to extend the bans, ASML believes there’s no reason for concern.
CEO Peter Winnink recently told investors that the organization will continue to function, even in the unlikely event that “China would be absolutely excluded from any growth”. According to Wennink, the global demand for lithography machines is high enough to minimize any impact from trade bans.
ASML grows fast
Yesterday, the organization raised its revenue forecast. ASML predicted sales of €30 billion to €40 billion by 2025. The organization expects €44 billion to €60 billion by 2030.
Following the announcement, ASML’s share price shot up. At the time of the Amsterdam Stock Exchange’s closing, the price had risen by 9.7 percent (€544.20). Wennink does not expect trade bans with China to affect the forecast significantly.
ASML receives more orders than it can handle. The organization currently produces about 60 EUV machines a year. ASML expects production capacity to rise to 90 systems by 2026. The machines sell for about €200 million each.
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