Chip equipment maker ASML expects demand to grow steadily by the end of the decade

ASML has improved its long-term outlook following a surge in demand for semiconductors that use its equipment. The Dutch manufacturer of lithographic scanners and other equipment for the production of chips expects that by 2025 its income will reach 24 – 54 billion euros per year, and gross profit will increase by 56 – 56%. This is much more than previously predicted 24 – 14 billion euros.

Chip equipment maker ASML expects demand to grow steadily by the end of the decade

ASML notes that it sees significant growth opportunities after 2025. It is assumed that in the period from 2020 to 2030 year, revenue will grow by about 14% every year. We add that after the publication of fresh forecasts, ASML shares rose by 1.7%, and since the beginning of this year they have risen in price by 70%.

As a reminder, the demand for chips rose sharply last year amid the pandemic, when people and companies started buying more electronics. This caused a serious shortage of semiconductors. The automotive industry was particularly hit, which with the onset of the pandemic reduced chip purchases due to a drop in demand for cars, and when it recovered, it could not quickly increase orders for chips, as production capacity was occupied by other products. ASML is confident that global trends in the IT market will continue to fuel the growth of the semiconductor market. The company added that the development of the semiconductor market and the creation of finer technical processes are driving demand for its products and services.

ASML is the only company in the world capable of building the sophisticated machines needed by chip manufacturers to produce the most advanced chips. Among the company’s clients are contract manufacturers Samsung and TSMC, which produce chips for NVIDIA, Apple, AMD and many other companies. Industry experts emphasize the critical importance of ASML and call it one of the largest assets in the semiconductor industry.


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