The Hague (AFP) – Dutch technology giant ASML, which makes cutting-edge machines to manufacture semiconductor chips, said Wednesday that the huge demand for AI had powered record sales and strong profits, and vowed to scale up production. ASML, Europe’s biggest tech firm by market value, reported a net profit of 5.0 billion euros ($5.6 billion) in the third quarter of the year, compared with 2.1 billion euros in the same period of 2025. The company is a critical player in the global economy and a bellwether for the tech sector, as the chips crafted with its tools power everything from smartphones to missiles.
It has also become a pivotal player in artificial intelligence, being the only manufacturer of machines capable of providing the advanced chips for AI systems worldwide. “Our customers continue to increase their short- and medium-term equipment demand forecasts with us, driven primarily by their views on the size and duration of AI-related investments,” the firm’s chief executive Christophe Fouquet said in a statement. “In light of their demand visibility, some customers are expressing an interest in placing orders with us for 2029 and even 2030,” he added.
Fouquet explained that demand was currently outstripping supply and that the firm was seeking ways to boost its production capacity for 2028 beyond a 30-percent increase that had already been announced. Strong customer demand prompted the firm to slightly raise its full-year sales forecast, predicting total turnover of 44-45 billion euros, up from a previous projection of 43-45 billion. “Our customers are asking us every single day to get more tools… so there is no doubt in our mind that we need to continue to get more output,” Fouquet said. ASML shares rose more than two percent at the opening bell on the Amsterdam stock market.
The firm expects net sales in the fourth quarter to come in at 14.2 billion to 15.2 billion euros. Its third-quarter sales were a record 11.7 billion euros, compared to 7.5 billion euros in the same period last year. The company had forecast 11-12 billion euros. “All in all, I would say a very, very strong quarter. A record quarter I think is fair to say,” said Chief Financial Officer Roger Dassen. “I think it’s a clear indication of the very strong execution that we have against the backdrop of a very, very strong market demand,” he added.
However, the company has been caught in the crossfire of a tech spat between the United States and China and has previously warned that its Chinese sales would “decline significantly” this year. Washington is leading efforts to curb high-tech exports to China over fears that they could be used to bolster the country’s military. Beijing has reacted furiously to these measures, describing them as “technological terrorism.” Dassen mentioned that China would represent around 20 percent of ASML’s business this year, in line with previous forecasts.
ASML has denied reports of US concerns that one of its advanced chipmaking machines was in China, potentially violating the restrictions. The Dutch firm holds the monopoly on extreme ultraviolet (EUV) lithography to manufacture the most advanced chips, but reports suggest that China is also in the early stages of producing its own EUV technology. In January, ASML announced a shake-up in its organization that was expected to result in the loss of around 1,700 jobs in the Netherlands and the United States, mainly from leadership roles. The company employs roughly 44,700 people worldwide.
© 2024 AFP
