ASML faces demand slowdown amid export restrictions
ASML's annual report reveals weakening demand, citing export controls as a key challenge impacting growth in the semiconductor industry.
Published on March 5, 2025
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Chipamchine manufacturer ASML published its 2024 annual report today. The report reveals a marked decrease in demand from customers in 2024, largely attributed to complex export controls, particularly those imposed by the U.S. The report highlights that uncertainties around technological sovereignty prompted a cautious approach amongst ASML's clientele, leading to reduced capital expenditures.
The semiconductor industry's complex geopolitical landscape has significantly impacted ASML's market dynamics. The company's latest annual report reveals that Chinese entities, which represented 36% of ASML's sales in 2024, are increasingly falling under restrictive measures. In response to these challenges, ASML projects a substantial decrease in Chinese market share, with expectations of sales dropping to approximately 20% by 2025.
ASML's financial outlook
Despite current headwinds, ASML maintains an optimistic financial trajectory. The company forecasts sales between €30-35 billion for 2025, building upon its 2024 performance of €28.3 billion. This growth projection is particularly supported by increasing demand for ASML's EUV lithography systems, which are crucial components in advanced chip manufacturing, especially in the expanding artificial intelligence sector.
Moreover, ASML has strengthened its leadership structure with key political appointments. The company announced the upcoming addition of Karien van Gennip, former Dutch Social Affairs minister, to its supervisory board. This appointment follows other significant recruitments, including former French Finance Minister Bruno Le Maire as special advisor to the executive board, and former deputy Economy Minister Frank Heemskerk as Global Affairs Chief. These appointments signal ASML's proactive approach to navigating complex international trade dynamics and regulatory challenges.
ASML customers can start testing with its newest machine: High NA EUV
The opening of the joint ASML-imec High NA EUV Lithography Lab gives customers like Intel the opportunity to start testing the possibilities.