ASML raises sales outlook for 2021 as demand for chips remains strong
AMSTERDAM (Reuters) – ASML, one of the largest suppliers to semiconductor companies in the world, on Wednesday raised its sales outlook for 2021 and announced a new share buyback, as sales skyrocketed in the context of a global shortage of computer chips.
The Dutch company, which serves all major chipmakers such as TSMC, Samsung and Intel, said demand for its equipment remains strong.
“Everyone is working extremely hard, us and our suppliers, to actually produce… more machines,” said Peter Wennink, CEO of ASML.
Sustained sales of consumer electronics during the pandemic, storage in China and supply issues have created a global semiconductor shortage that has affected various industries.
ASML, which reported second-quarter net profit up 38% to € 1.02 billion ($ 1.2 billion), raised its sales growth outlook for 2021 to 35%.
ASML’s lithography system orders reached € 8.3 billion in the second quarter, up 75% from the end of the first quarter, with orders worth € 4.9 billion. euros for EUV machines, the extreme ultraviolet systems needed to make advanced chips.
ASML, based in Veldhoven, in the south of the Netherlands, is the leading manufacturer of lithography systems, huge machines that concentrate beams of energy to help map the tiny circuits of computer chips and cost up to $ 200. million euros each.
ASML has said it will repurchase € 9 billion of its own stock by the end of 2022, replacing its near-completed € 6 billion buyout launched last year.
The ASML share price has risen more than 40% since the start of 2021, reaching an all-time high this month.
“I think the future of the industry is bright. Semiconductor manufacturers currently have combined sales of around $ 500 billion. It could be a trillion dollars by the end of this decade, ”said Wennink.
The bulk of ASML’s sales are to Taiwan and South Korea, with China third and the United States fourth.
“Everything is essentially driven by what we see today, namely the digital revolution. It is the deployment of 5G and 6G. This is the progress we are making on artificial intelligence, self-driving cars, ”said the CEO.
($ 1 = 0.8500 euros)
(Reporting by Bart Meijer; Editing by Subhranshu Sahu and Edmund Blair)