by Toby Sterling
AMSTERDAM (Reuters) – Dutch semiconductor equipment maker ASML on Wednesday reported better-than-expected second-quarter results and upgraded its full-year sales forecast in due to strong demand from Chinese customers.
The chief executive of Europe’s largest technology company by market capitalization, Peter Wennink, raised ASML’s revenue growth forecast for the full year to 30% from 25%.
He cites high demand from Chinese customers who can only buy slightly older equipment due to export control rules.
“Our clients, across the various market segments, are currently more cautious due to continuing macroeconomic uncertainties, and therefore expect a later recovery,” Peter Wennink said in a statement.
“However, our strong order book of around 38 billion euros gives us a good basis to face these short-term uncertainties,” he added.
Net profit in the second quarter rose 35% year on year to 1.9 billion euros and the figure by 28% to 6.9 billion, beating analysts’ expectations at 1.82 billion euros and 6 .74 billion, respectively, according to Refinitiv data.
ASML dominates the market for lithography systems, machines that cost up to $200 million each, using lasers, lenses and mirrors to create microscopic electronic circuitry for chips.
The group supplies almost all chip manufacturers and increases its production because it cannot meet the demand of its customers.
(Reporting by Toby Sterling; Nathan Vifflin, editing by Kate Entringer)
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