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ASML sees decade of growth, US$28-35 billion revenues by 2025

ASML sees decade of growth, US$28-35 billion revenues by 2025

ASML Holding logo is seen at company's headquarters in Eindhoven, Netherlands, Jan 23, 2019. (Photo: REUTERS/Eva Plevier)

AMSTERDAM: ASML Holding NV, one of the key suppliers to computer chip makers, increased its financial forecasts on Wednesday and said it would have revenue growth of around 11 per cent annually through 2030 amid booming demand for its products.

"We feel very comfortable with these numbers" Chief Executive Peter Wennink said at a presentation to investors, adding that they did not include possible extra demand for chips due to US, Chinese and European drives for "technological sovereignty."

In a market update, ASML estimated revenue would hit €24-30 billion (US$28-35 billion) in 2025 with gross margins up to 55 per cent. That compares with the previous forecast of a €15-24 billion range in the same year, at gross margins of at least 50 per cent.

ASML says it is benefiting from what it termed "global megatrends in the electronics industry" that will lead to 7.4 per cent annual growth for chipmakers, with ASML taking a relatively larger share.

The presentation comes as semiconductor makers scramble to address a global chip shortage and expand to meet future demand. ASML is operating at maximum capacity to supply major chip makers such as TSMC, Samsung and Intel.

Wennink said the company is building enough capacity even for demand scenarios that go beyond the high end of its 2025 forecasts.

"We want to make sure we are not in the situation where we are today, where we simply cannot supply our customers with what they want.

ASML makes lithography systems, large machines that use energy beams to map out the tiny circuitry of computer chips. Its most cutting-edge tools cost €160 million each and sit at the heart of semiconductor fabrication plants.

At second quarter earnings in July, ASML forecast a 35 per cent increase in sales to nearly €19 billion in 2021, at gross margins of better than 50 per cent, putting it past the lower end of its 2025 range of goals.

The company's stock has reflected its strong outlook with a market capitalisation around €272 billion, making it Europe's largest technology company.

Shares declined 1.9 per cent to 652 euros in Amsterdam by 1534 GMT. Despite a sell-off in the past week, ASML shares are up 66 per cent in the year to date and more than 100 per cent in the past year, strongly outperforming the sector.

Source: Reuters

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