ASML stories robust Q3, says it’s not hit by U.S. China sanctions By Reuters

AMSTERDAM (Reuters) -ASML Holding NV, a key gear provider to pc chip producers, on Wednesday reported better-than-expected third-quarter gross sales and revenue and document new bookings, and mentioned it doesn’t anticipate a big affect from U.S. sanctions on China.

“There’s uncertainty out there on account of quite a few world macro-economic considerations together with inflation, client confidence and the danger of a recession,” mentioned CEO Peter Wennink in a press release.

Regardless of weak spot in the long run marketplace for reminiscence chips, nonetheless, “the general demand for our methods continues to be robust. This resulted in document bookings within the third quarter of round 8.9 billion euros,” he mentioned.

ASML, Europe’s largest know-how firm, makes lithography methods, massive machines that price as much as $160 million every and are utilized by chipmakers reminiscent of Taiwan Semiconductor (TMSC), Samsung (KS:) and Intel (NASDAQ:) to create the circuitry of pc chips.

It’s presently unable to maintain up with demand from these firms as they search to construct new manufacturing crops, and with ASML’s backlog now at greater than 30 billion euros, ASML is searching for to broaden its personal manufacturing capability by 2025.

ASML’s third-quarter internet revenue was 1.7 billion euros ($1.7 billion), on gross sales of 5.8 billion euros, beating analyst forecasts of revenue of 1.42 billion euros, on gross sales of 5.41 billion euros.

By comparability within the second quarter of 2022, ASML had earnings of 1.70 billion euros on gross sales of 5.78 billion euros.

The US earlier this month issued sweeping new restrictions on exporting semiconductors to China.

ASML has been restricted by the Dutch authorities in delivery its greatest machines to China, on account of U.S. diplomatic affect, since 2019. Nonetheless, it nonetheless sells barely older machines in China, the place it had 16% of gross sales in 2021.

ASML mentioned the affect of the brand new U.S. laws seems restricted provided that it’s a European firm with few U.S. components utilized in its machines.

“We will proceed to ship non-EUV (much less superior) lithography instruments out of Europe to China,” the corporate mentioned.

Nonetheless, Chinese language prospects could have issue acquiring different components they want, the corporate mentioned. ASML famous that because it can’t sustain with orders normally at present, if orders for instruments from China sluggish, it may promote them elsewhere.

($1 = 1.0165 euros)