ASML beats estimates however sees some chipmaker warning


By Toby Sterling

AMSTERDAM (Reuters) -ASML Holding NV beat first-quarter earnings forecasts on Wednesday on continued sturdy demand for its chip making gear, however famous some indicators of warning amongst prospects.

The feedback from Europe’s largest tech agency comply with information that Samsung will lower manufacturing due to a downturn in semiconductor demand, whereas reminiscence chip makers SK Hynix and Micron have lower spending plans.

ASML posted a threefold leap in web revenue to 1.96 billion euros ($2.15 billion) on income up 91% at 6.74 billion euros. Analysts had forecast web revenue of 1.62 billion euros on income of 6.31 billion euros, Refinitiv knowledge exhibits.

The Dutch firm is required from this summer season to limit exports of some gear to China, after the Netherlands joined a drive by the US to limit provides to Beijing which may have “twin use” army purposes.

ASML mentioned gross sales to China dipped within the first quarter however had been anticipated to be stronger by means of the remainder of 2023, and added its outlook remained sturdy regardless of consumer belt-tightening.

“General demand nonetheless exceeds our capability for this 12 months and we at the moment have an (order) backlog of over 38.9 billion euros,” CEO Peter Wennink mentioned in a press release.

ASML performs a key position within the semiconductor business as a result of it dominates the marketplace for lithography gear used to create the minute circuitry of chips.

It has struggled to satisfy demand as prospects TSMC, Samsung and Intel spend billions on growth.

“In our opinion, neither 2023 or 2024 estimates on the firm are in danger,” JPMorgan mentioned in a be aware.

ASML shares had been down 2.5% to 574.00 euros at 0800 GMT, however are up greater than 10% year-to-date.

The corporate stored a forecast for 25% gross sales progress this 12 months, with gross sales of 6.5-6.7 billion euros within the second quarter.

Finance chief Roger Dassen mentioned some main corporations had been “delaying the timing of their demand for sure instruments” however others had been taking their orders.

    “For reminiscence prospects, we do see them limiting their capex … (and) we see a few of that behaviour additionally in sure segments of logic,” he mentioned, referring to the 2 largest classes of laptop chips.

($1 = 0.9118 euros)

(Reporting by Toby SterlingEditing by David Goodman and Mark Potter)