(Bloomberg) — ASML Holding NV’s new orders fell short of analysts’ expectations, hurt by the downturn in demand for its most advanced machines from the chip making industry.
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Order bookings at Europe’s most valuable technology firm were €3.6 billion ($3.8 billion) in the first quarter, the company said, compared with an average estimate of €4.63 billion by analysts surveyed by Bloomberg. In the fourth quarter, bookings were a record €9.19 billion.
“Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry’s continued recovery from the downturn,” Chief Executive Officer Peter Wennink said in the statement. “We see 2024 as a transition year.”
ASML is the world’s sole producer of equipment needed to make the most advanced chips that power everything from smartphones to sophisticated military gear. Dutch and US export rules meant to stifle Beijing’s chip ambitions have targeted the Veldhoven-based company’s ability to sell cutting-edge equipment to China.
ASML benefited from strong demand from China last year as chipmakers there rushed to get advanced lithography machines ahead of the limits. The new measures, which fully kicked in on Jan. 1, restrict ASML from selling immersion DUV lithography machines, its second-most capable category of machinery, to China.
ASML has never been able to sell its most advanced extreme ultraviolet machines to China amid pressure from the US government. The company expects as much as 15% of China sales this year will be affected by the new export control measures.
Meanwhile, some of ASML’s biggest customers have been posting positive results. Earlier this month, Taiwan Semiconductor Manufacturing Co. said its quarterly revenue grew at its fastest pace in more than a year.
Christophe Fouquet, ASML’s chief business officer, will take over as chief executive officer when Wennink retires later this month. He will have to balance geopolitical pressure from the US while attempting to satisfy shareholders accustomed to growth. During a decade under Wennink, shares rose nearly 1,400%.
ASML reiterated that forecast sales this year will be similar to 2023.
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