The company logo of ASML Holding Semiconductor is displayed on the smartphone. ASML is a Dutch company and currently the world’s largest supplier of photolithography systems for the semiconductor industry. (
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ASML raised its long-term outlook after a surge in demand for the semiconductors its machines help manufacture.
The Dutch company, which makes the lithography equipment used to make the world’s most advanced chips, said in a statement at its Investors Day that it will now have annual sales of € 24 billion to € 30 billion ($ 28 billion to $ 35 billion) through 2025. expected, with gross margins between 54% and 56%.
The forecast is well above the previously forecast range of 15 to 24 billion euros.
“We see significant growth opportunities beyond 2025,” the company said, adding that it expects annual revenue growth of around 11% between 2020 and 2030.
The demand for chips has increased globally over the past year after the coronavirus pandemic led to a chip crisis that devastated the automotive industry and beyond.
According to ASML, “global megatrends in the electronics industry” in conjunction with “a highly profitable and extremely innovative ecosystem” should further stimulate growth in the semiconductor market.
It added that growth in semiconductor markets and “increasing lithography intensity” are driving demand for its products and services.
ASML, headquartered in Veldhoven, is the only company in the world that is able to build the sophisticated machines that chip manufacturers need to produce the most advanced chips. These chips are faster and more efficient than their predecessors.
ASML’s customers include Samsung and Taiwan Semiconductor Manufacturing Co., which make chips for companies like Apple.
Reuters reported last year that the Trump administration had pressured the Dutch government to stop selling the machine to Chinese customers.
The importance of ASML
“ASML is absolutely critical to the entire semiconductor ecosystem,” Peter Hanbury, partner at Bain & Company consulting firm specializing in semiconductors, told CNBC in June. “In a way, it’s as important as TSMC.”
Frank Bosenberg, managing director of the technology network Silicon Saxony, told CNBC in August that ASML was “an important asset” in the semiconductor industry.
The company will benefit as chipmakers invest heavily in new plant and equipment to meet growing demand. For example, TSMC has pledged to spend $ 100 billion over the next three years to expand its capacity and remove current bottlenecks.
Tesla CEO Elon Musk said last week that he expects the global chip shortage to be a short-term problem that will end next year when new chip factories go online. AMD boss Lisa Su said on Monday that she also expected an end next year.
ASML’s Amsterdam-listed shares, valued at $ 322 billion, rose 1.7% Wednesday morning and are up 70% so far this year.