(Bloomberg) —
ASML Holding NV raised its sales guidance for coming years as chipmakers rush to fill a supply shortage by ordering more of its machines that make high-end semiconductors.
The Dutch company sees annual revenue in 2025 of between approximately 24 billion euros and 30 billion euros ($35 billion), with a gross margin between 54% and 56%, according to a statement on its investor day. It had previously seen an opportunity for sales of between 15 billion and 24 billion euros.
The pandemic has left manufacturers lacking the vital electronic components that power everything from smartphones to cars, costing them billions of dollars in lost revenue.
“Global megatrends in the electronics industry, supported by a highly profitable and fiercely innovative ecosystem, are expected to continue to fuel growth across the semiconductor market,” ASML said in the statement.
The World Is Short of Computer Chips. Here’s Why: QuickTake
It said growth in semiconductor markets and “increasing lithography intensity” are driving demand for its products and services. The company sees annual revenue growth of around 11% this decade.
Supply Shortfall
The Dutch company has cornered the market for the latest advanced extreme ultraviolet lithography equipment needed to make cutting-edge chips that are faster, cheaper and more efficient. It competes with Japan’s Nikon Corp. in deep ultraviolet machines used to produce more mature chips.
Customers include Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., which have been investing heavily to keep up with rebounding demand as lockdowns ended.
TSMC is spending $100 billion over three years to expand capacity and develop cutting-edge technologies. There is also a growing demand for ASML’s EUV machines among memory makers, Chief Executive Officer Peter Wennink said in July.
Chipmakers have continued to sound an upbeat note about demand for the next few quarters to come. Advanced Micro Devices Inc. CEO Lisa Su said Tuesday that tight supply of the crucial electronic components will likely persist into the first half of 2022.
However, ASML has been prevented from shipping EUV systems to China, a key market, as the Dutch government — under U.S. pressure — has not approved its export application.
European and U.S. officials are expected to discuss semiconductor-related issues in a meeting at Pittsburg later on Wednesday.
(Updates with detail on chipmaker production boost from ninth paragraph)
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
