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Tag: asml
What is the Most Important Product ASML Make? Extreme Ultraviolet (EUV) Lithography Machine
The most important product that ASML makes is the extreme ultraviolet (EUV) lithography machine. EUV lithography is the most advanced lithography technology available, and it is essential for the production of the most cutting-edge chips.
EUV lithography machines use light with a wavelength of 13.5 nanometers (nm) to pattern the circuits onto the silicon wafer. This wavelength is much shorter than the wavelength of light used in older lithography technologies, which allows for much finer features to be created.
EUV lithography machines are incredibly complex machines, and they take years to develop and build. ASML is the only company in the world that can produce these machines, and it has a monopoly on the EUV lithography market.
EUV lithography machines are used to produce the chips that are used in a wide range of products, including smartphones, laptops, data center servers, and artificial intelligence (AI) accelerators. Without EUV lithography machines, it would not be possible to produce the most advanced chips, and many of the products that we rely on today would not exist.
ASML’s EUV lithography machines are essential for the global semiconductor industry, and they play a vital role in driving technological innovation.
ASML to Speed Up Delivery of Mature Chipmaking Machines to China
ASML, the world’s largest supplier of chipmaking equipment, is looking to speed up the delivery of mature lithography machines to China. This is in response to strong demand from Chinese chipmakers, who are looking to upgrade their production lines.
Lithography machines are essential for the production of chips, as they are used to pattern the circuits onto the silicon wafer. ASML is the only company in the world that can produce the most advanced lithography machines, which are used to make the most cutting-edge chips.
However, ASML is not allowed to sell its most advanced lithography machines to China due to US pressure. This is because the US government is concerned that China could use these machines to develop advanced military technologies.
As a result, Chinese chipmakers have been relying on older, less advanced lithography machines from ASML. However, these machines are not capable of producing the most cutting-edge chips.
ASML is now looking to speed up the delivery of mature lithography machines to China. These machines are not as advanced as the latest models, but they are still capable of producing the chips that are needed for most consumer electronics products.
The move by ASML is likely to be welcomed by Chinese chipmakers, who are eager to upgrade their production lines. It will also help ASML to boost its sales, as China is a major market for chipmaking equipment.
ASML – Q3 2023 Earnings Report – Tough Reading for the Semiconductor Business
$ASML‘s Net Bookings are under pressure amidst the industry down-cycle, however, the equipment giant expects “significant growth” in 2025 – as per today’s Q3 report.
Q3 2023 (y/y)
Net Bookings -70%
Net Sales +15%
*Lithography systems +30%
EBIT +13%
*Margin 32.7% (33.5)
Net Income +11%
*Margin 28.4% (29.4)
EPS +12% FCF -23%
Industry Cycle Bottom? “The semiconductor industry is currently working through the bottom of the cycle and our customers expect the inflection point to be visible by the end of this year” – CEO, Peter Wennink
Two-Year Outlook “Based on our current perspective, we take a more conservative view [on 2024] and expect a revenue number similar to 2023. But we also look at 2024 as an important year to prepare for significant growth that we expect for 2025.” – CEO, Peter Wennink
