Dutch chipmaking equipment supplier ASML confirmed to China Daily during its third-quarter earnings release that sales in the Chinese market are expected to return to “more normalised levels.”
ASML unveiled its 2024 Q3 financial results, highlighting potential shifts in its business performance in China. Analysts noted that the company might face slower sales growth in China over the next few quarters.
ASML explained that the rise in China’s share of its system sales in recent years stemmed from the company’s inability to meet full demand in China, coupled with reduced demand from customers outside China.
Roger Dassen, ASML’s Chief Financial Officer, stated: ”As ASML gradually meets the needs of its Chinese customers and observes a recovery in other markets, we expect the share of system sales in China to return to more normalized levels.”
Dassen also projected that China would account for approximately 20% of ASML’s global revenue next year. However, in the third quarter of this year, China remained ASML’s largest market, contributing 47% of its net system sales.
Additionally, ASML emphasized that a significant portion of its Chinese business involves the sale of immersion lithography systems, which offer profit margins higher than the company’s overall gross margin. Consequently, changes in China’s market share could also impact ASML’s profitability.
This shift comes amid the semiconductor industry’s broader challenges in navigating supply chain disruptions and fluctuating demand across key markets.
Source：CHINADAILY.COM