Dutch government restricts ASML's ability to service DUV machines in China, limited impact forecasted

From Investing.com: 2024-09-01 07:00:00

The Dutch government imposes new restrictions on ASML’s ability to service DUV machines in China, but analysts predict limited impact on earnings due to higher profitability in tool servicing. Pressure from the U.S. influenced this decision to limit China’s access to advanced semiconductor technology.

JPMorgan believes restrictions will affect tools shipped to China but won’t prevent current tools’ servicing. They estimate a -1% revenue impact in 2025 and -1.25%+ gross margin impact due to restrictions only on advanced DUV tools.

Wells Fargo also sees minimal revenue impact, with domestic China service revenue at 10% of total services. They expect restrictions to affect only a small portion of this 10%. Both banks agree the restrictions won’t drastically alter ASML’s financial outlook.



Read more at Investing.com: Implications for ASML as the Dutch government takes a tougher stance on China By Investing.com