ASML Responds to DUV Lithography Machine Restrictions
In recent developments, the United States has initiated constraints on the sales of NVIDIA's AI chips and lithography machines, to which ASML, a significant industry player, has promptly responded.
Reports indicate that the U.S. has expanded its equipment restrictions in specific countries and regions, now encompassing deep ultraviolet (DUV) lithography systems. This measure goes beyond recent Dutch regulations and aims to hinder ASML from exporting older DUV models and associated components.
While DUV lithography machines may not rival their state-of-the-art extreme ultraviolet (EUV) counterparts, they remain capable of producing advanced chips at a relatively higher cost.
ASML has conveyed, "We are meticulously evaluating the prospective ramifications. Concerning our operational landscape, and based on our current information, we find that the application of these new regulations to semiconductor manufacturing facilities involved in advanced chip production within mainland China is limited. Over the medium to long term, these export control measures may influence the distribution of our machinery across different regions. Nonetheless, we anticipate that these measures will exert an insubstantial impact on the company's 2023 financial standing or the long-term projections we unveiled during our Investor Day in November 2022. ASML will actively seek further clarification from the U.S. government concerning the precise scope of these newly instituted regulations."
In alignment with ASML's prior declarations, they have affirmed their commitment to continue shipments of their NXT:2000i and more sophisticated DUV models throughout the remainder of 2023.
ASML has officially released its financial report for the third quarter of 2023, achieving a net sales figure of approximately 6.7 billion euros. The quarterly gross margin has been realized at 51.9%, with a net profit of 1.9 billion euros. It is anticipated that the annual growth for 2023 will substantiate an impressive 30%. Throughout this quarter, ASML successfully traded a total of 112 lithography machines, with new orders amounting to a substantial 2.6 billion euros.
Examining the types of equipment disbursed in the third quarter, ASML effectuated the sale of 105 brand-new lithography machines, as well as 7 pre-owned machines, which were categorized as follows: 11 EUV machines, 32 ArFi (immersion DUV lithography machines), 9 ArF dry (dry DUV lithography machines), 44 KrF machines, and 16 I-Line machines.
From an application-oriented perspective, predicated on sales metrics, manufacturing equipment intended for logic chip production accounted for a significant 76% of total shipments. In parallel, equipment designated for the fabrication of storage chips constituted the remaining 24%. In terms of monetary value, ArFi immersion lithography machines dominated, accounting for a commanding 48%, with EUV machines staking an impressive 35%.
The composition of customers in the third quarter purchase landscape reflected mainland China customers at 46%, followed by China Taiwan at 24%, and South Korea at 20%. This quarter's escalated market share in mainland China can be ascribed to two fundamental factors. Firstly, the equipment shipped to mainland China primarily served well-established semiconductor manufacturing clients, with the majority of these shipments having originated from orders placed in 2022 or earlier. Secondly, alterations in demand timelines from other clientele enabled ASML to allocate more equipment to Chinese customers, thereby elevating the volume of deliveries within the Chinese territory. It is pertinent to acknowledge that all equipment shipments remain in strict compliance with extant export control regulations, as corroborated by Dasse.
