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ASML sees no impact from China trade war, good growth in 2020

VELDHOVEN, NETHERLANDS: Semiconductor tools maker ASML Holding NV on Jan 22 forecast double digit progress in gross sales and earnings for 2020, saying it didn’t anticipate any monetary influence from being swept up within the commerce struggle between the US and China.

ASML has a near-monopoly in making lithography methods, large €150mil (RM676mil) machines used to print chip circuitry, however the Dutch authorities has withheld permission for the corporate to export certainly one of its most superior applied sciences to China.

Reuters reported earlier this month that the delay got here after a marketing campaign of stress from the Trump administration to cease China getting maintain of a machine required to make the world’s quickest microprocessors, however which additionally has army purposes.

ASML CEO Peter Wennink on Jan 22 confirmed that the corporate had requested however not obtained permission to ship a machine with “Excessive Ultraviolet”, or EUV, know-how to a Chinese language buyer, understood to be SMIC.

“We have to abide by the regulation, and if we need to ship a sure know-how… we have to go to our authorities and apply for an export license,” he mentioned in an interview.

He confirmed that the corporate was nonetheless ready for approval to ship the order to China, however estimated the monetary influence of the delay on the corporate as “zero”.

Earlier on Jan 22 ASML reported fourth quarter web revenue of €1.13bil (RM5.09bil), up 43% from the identical interval of 2018 as gross sales rose 29% to €4.04bil (RM18.21bil).

Wennink mentioned that any machines destined for, however not despatched to, China would ultimately be offered elsewhere as world demand for pc chips grows.

“If we can’t ship to buyer A or nation B, we’ll ship it to buyer C and nation D,” he mentioned.

ASML shares, which have greater than doubled over the previous 12 months as its prospects introduced plans to take a position closely in new chipmaking capability, traded 0.5% greater at €272.6 (RM1,228.31) at 1311 GMT (9:11pm Malaysia).

Regardless of issues delivery cutting-edge tools, ASML often sends previous-generation know-how to China, the place prospects comparable to TSMC, Intel and Samsung have manufacturing services.

Chinese language prospects accounted for 12% of ASML’s whole gross sales in 2019, down from 19% the earlier 12 months, with Wennink saying that was resulting from common weak point in end-market demand for reminiscence chips, quite than restrictions on ASML’s know-how.

He added that the marketplace for logic chips utilized in sensible telephones and 5G telecommunications networks was anticipated to stay robust, whereas prospects had been beginning to see the primary indicators of restoration within the reminiscence chip market.

ASML forecast gross sales of €3.1bil-€3.3bil (RM13.97bil-RM14.87bil)) within the first quarter and introduced a brand new €6bil (RM27.03bil) share buyback program by way of 2022. – Reuters

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