ASML Holding N.V., a key supplier of equipment to computer chip manufacturers, announced on Wednesday its financial results for the second quarter, reporting net sales and profit that exceeded analyst expectations. The company attributed the performance to strong demand for its lithography systems used in producing advanced semiconductors for artificial intelligence applications, which helped offset market uncertainty related to new export controls on sales to China.
According to its official earnings report released July 19, ASML posted a net profit of 1.9 billion euros ($2.1 billion) on net sales of 6.9 billion euros for the quarter ending June 30. These figures surpassed forecasts from analysts, who, according to data from Refinitiv, had anticipated revenue of 6.74 billion euros. The company’s net bookings, which represent new orders, were 4.5 billion euros in the second quarter.
In a statement accompanying the results, ASML President and CEO Peter Wennink commented on the market dynamics. “Our customers across different market segments are currently more cautious in their decision-making due to the ongoing macro-economic uncertainties,” Wennink said. “However, our strong backlog of €38 billion provides us with a good basis to navigate these short-term uncertainties.”
The company’s performance comes as the Dutch government prepares to implement new regulations affecting the export of certain advanced semiconductor equipment. The rules, announced in June and scheduled to take effect on Sept. 1, will require ASML to obtain a license to ship some of its advanced deep ultraviolet (DUV) lithography systems. These measures align with efforts by the United States to restrict China’s access to high-end semiconductor technology.
ASML stated that it does not expect the new Dutch or anticipated U.S. export controls to have a material impact on its financial outlook for 2023.
Looking ahead, the company provided a forecast for the third quarter, projecting net sales between 6.5 billion and 7.0 billion euros. ASML also reiterated its full-year guidance, expecting year-over-year sales growth of around 30%. The demand for its systems remains driven by global trends in electrification and artificial intelligence, which require increasingly powerful and efficient computer chips.
