ASML expects slower chip orders to affect 2024 sales By Investing.com

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<p>ASML Holding NV (AS:), a maker of semiconductor equipment, announced on Wednesday that it has received fewer orders than expected. This has led the company to predict steady sales in 2024 as its customers are saving money due to economic instability. As a result, the company’s stock price fell.</p>
<p>ASML, known as Europe’s top tech company, shared its belief that the semiconductor industry is probably at its lowest point. However, because of the uncertain recovery of demand, the company predicts 2024 will be a year of change. ASML’s Chief Financial Officer, Roger Dassen, said that customers are being careful with their money and spending, which has made them hesitant to place orders.</p>
<p>ASML’s stock price was able to recover some of its early losses and was down by 1.9% at 562 euros at 7:25 Greenwich Mean Time in Amsterdam. The company’s net profit for the three months ending September 30 was 1.9 billion euros (about $2.01 billion), which matched the predictions of analysts. Net bookings were reported at 2.6 billion euros, compared to third-quarter sales of 6.7 billion euros.</p>
<p>Despite these challenges, ASML’s overall future looks positive according to analyst Jos Versteeg from InsingerGilissen. He said that the company’s basic conditions are still very good and he expects the chip market to bounce back.</p>
<p>ASML is the leading provider of lithography systems, which are costly machines used by chip makers such as TSMC, Samsung (KS:), and Intel (NASDAQ:) to make small chip circuitry. Even with the uncertainty about 2024, Dassen said that ASML still had an order backlog worth 35 billion euros and expects a strong 2025, considering its customers’ plans to expand in Asia, the United States, and Europe.</p>
<p>Dassen also said that the company does not expect any financial impact from the new U.S. policy announced on Tuesday, which limits sales of semiconductor equipment to China. In recent years, China has been ASML’s third-largest market after Taiwan and South Korea, but it was the biggest in the third quarter, with 46% of sales.</p>
<p>Reuters contributed to this article.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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