Chip-tech maker ASML forecasts booming sales

ASML, the world-leading manufacturer of machines to produce top-of-line semiconductors, said Wednesday sales were set to jump by over a third this year amid strong global demand for computer chips.

The Netherlands-based firm reported that its second-quarter net sales came in at 4.0 billion euros ($4.7 billion), which was an increase of a fifth from the March-June period last year.

While that was nearly an 8 percent slide from the first quarter, the company said it expects sales to pick up in July through September to between 5.2 and 5.4 billion euros.

ASML makes the systems used by the semiconductor industry to manufacture the chips that go into products from mobile phones to cars, and it is seen as a key bellwether for the IT industry.

A pandemic-driven surge in demand for home electronics has created a semiconductor chip supply crunch that has led to automakers temporarily halting production lines.

ASML said demand is high for all of its products as it booked nearly 8.3 billion euros in net new orders in the second quarter. That is more than the total in 2018 and nearly three-quarters of last year’s total.

“This is a reflection of the market that is focused on increasing capacity to support the build-up of the digital infrastructure,” CEO Peter Wennink said in a statement.

He added that demand was up not only for the company’s latest models as the company indicated it plans to refurbish this year 20 machines of a model introduced 30 years ago and which are still extensively used by clients.

“We are working to maximize output and we currently expect net sales growth by around 35 percent in 2021 compared to last year,” Wennink said.

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