TMTPOST -- Netherlands-listed shares of ASML Holding NV dived as much as 7.6% before finishing 5.2% lower on Wednesday after the bellwether for the semiconductor industry flagged potential shocks of U.S. tariffs.
Credit：China Daily
ASML posted net bookings of €3.94 billion ($4.48 billion) for the first quarter of the year, shedding 44.5% from three months earlier. That represents a big miss for a key indicator of order demand, compared with analysts estimated €4.89 billion according to LSEG. The company’s net sales dropped 16.4% quarter-over-quarter (QoQ) to €7.74 billion, just shy of analysts’ projection of €7.8 billion. Net income came in at €2.36 billion with a QoQ decline of 12.6%, still ahead of expected €2.3 billion.
Founded in 1984, Netherlands-based ASML provides comprehensive lithography solutions encompassing hardware, software, and services, assisting chip manufacturers in large-scale image etching on silicon wafers. Meanwhile, ASML is currently the only manufacturer of Extreme Ultraviolet (EUV) lithography systems in the world. As a key for the future lithography technology and advanced process, EUV lithography is the most expensive step in making the advanced microchips that power data centers, cars and iPhones.
ASML has been restricted from selling its high-end machines in China since 2019 due to U.S.-led export controls. Latest earnings showed there were no signs of demand improvement yet, increasing concerns over the outlook amid tariffs and export curbs imposed by U.S. President Donald Trump.
ASML’s net sales were in line with the company’s guidance and the gross margin came in at 54.0%, above the guidance, partially driven by a favorable EUV product mix, said the President and CEO Christophe Fouguet. The chief executive said contacts with customers support ASML’s expectation that this year and the next year will see growth, though warning “the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while.”
Looking forward, ASML anticipated net sales for the second quarter between €7.2 billion and €7.7 billion, with a gross margin between 50% and 53%. that missed analysts’ forecast of €7.8 billion. ASML said the range of guidance was larger than usual due to uncertainty regarding tariffs.
ASML last October cut its forecast of net sales for the 2025 year to between €30 billion and €35 billion as it believed some areas of the semiconductor industry beyond artificial intelligence (AI) will take longer than expected to recover. The company that month anticipated weakness of the market remained throughout the full 2025, prompting customers’ cautious on ordering.
ASML on Wednesday reaffirmed its annual guidance, with a gross margin between 51% and 53%. on an earnings conference, Fouquet said that the demand outlook “remains strong” with staying as a primary driver in the semiconductor industry, but the annual sales could hit the lower end of guidance because of “uncertainty with some of our customers.” If the AI demand continues to be strong, that could still take the company into the higher end of yearly guidance, said Fouquet.
ASML's Chief Financial Officer (CFO) Roger Dassen told analysts the company is working with everyone involved in its ecosystem to minimize tariff impacts. ASML pointed out earlier that tariffs will affect the systems it ships, parts used in field operations, parts shipped to U.S. manufacturing facilities and retaliatory tariffs other countries place on U.S. exports.