US chip export curbs impacting ASML sales in China, causing shares to plummet 16%

From CNBC: 2024-10-16 10:35:07

ASML discloses how U.S. export restrictions on chip manufacturing tools will impact sales in China. Lower end of 2025 sales estimate revealed, causing shares to plummet 16%. Analysts attribute drop to delays in new facilities from Intel and Samsung. New guidance predicts China sales to fall 25-30% in 2025.

China customers stockpile ASML’s machines to bypass export restrictions. ASML has never sold most advanced EUV machines to China due to previous restrictions. ASML expects China revenue to drop from 29% to around 20% in 2025. Sales surged in 2024, growing to 49% in Q2. Dutch government extends export restrictions on chip-making machines, impacting ASML.

Despite restrictions, China remains crucial market for ASML. Restrictions on DUV machines to China have accelerated purchases of older tools. ASML anticipates decline in China sales due to trade restrictions. Analysts predict severe revenue decline of 48% in China for 2025. Demand for ASML machines expected to decrease significantly worldwide.



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