ASML Reports Unexpected Rise in Chinese Demand for Chip Tools
By Nathan Vifflin
(Reuters) -Chinese demand for ASML's chip-making tools has been stronger than expected in 2025, Chief Financial Officer Roger Dassen said on Wednesday.
ASML, the world's biggest supplier of computer chip-making equipment, had warned in October that China sales would drop to 20% of its net system sales. However, they are so far looking stronger than anticipated, Dassen said on a media call.
"We originally set 20%, then we set low 20%. It's turning now a little bit higher. So we're probably looking a bit over 25% right now," he said.
First-quarter net system sales to China remained stable compared to the last quarter at 27%, while they fell everywhere else except Taiwan.
Dassen said on an earnings call later that demand for mainstream chips in China for domestic consumption and export remained resilient.
Analysts have said that they expect Chinese chipmakers to keep orders for ASML's older DUV machines high on concerns over further export controls later this year.
Chinese chipmakers' continued strategic investments are one of the reasons ASML remains in good position to navigate the difficult environment posed by U.S. tariffs, J.P.Morgan analysts wrote in their first take on the results.
Responding to an analyst's question on rumours of potential Chinese competitors being close to developing an alternative to ASML's EUV tool currently under U.S. export curbs, Chief Executive Christophe Fouquet said "it will take many, many years for China to make an EUV machine."
"It's always possible to generate some EUV light. It may even be possible to have an EUV mirror here and there. But in no way is there enough proof that there is a serious product on the way," he said on the company's investor call.
ASML is the only maker of the world's most advanced chip circuitry engraving system, the Extreme Ultraviolet Lithography (EUV) machine used to make most smartphones and AI chips designed by the likes of Apple or Nvidia. China strongly wishes to have this tool, Fouquet said.
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi and Bernadette Baum)