ASML is Europe’s most valuable technology company and the sole producer of lithography equipment for advanced semiconductors. It has just reported that it experienced a surge in orders during the second quarter of 2023, defying the industry-wide slowdown. The company announced that order bookings reached 4.5 billion euro ($5 billion), marking a 20% increase from the previous quarter. The company forecasts 30% sales growth in 2023.
The rise in orders can be attributed to a recent surge in demand from Chinese customers seeking to circumvent impending export controls resulting from US sanctions and supply chain realignment pressures. ASML’s deep ultraviolet (DUV) lithography machines, used for producing advanced semiconductors, faced higher demand than supply, further bolstering the company’s order books. As a result, ASML’s net profit for the quarter rose by 35% compared to the previous year, reaching 1.9 billion euro ($2.1 billion), while sales increased by 28% to 6.9 billion euro ($7.7 billion). ASML’s solid order backlog of around 38 billion euro ($42.6 billion) is driven by sectors such as electric vehicles and generative AI.
