Chip machine maker ASML continued to increase sales and profits in the third quarter. Thanks to increased homeworking, technology companies continue to do well in the midst of the coronacrisis, which also stimulates the demand for increasingly sophisticated chips. ASML is a supplier to almost all major chip makers.
Sales in the third quarter amounted to almost EUR 4 billion, compared with EUR 3.3 billion in the previous quarter. ASML also exceeded its own expectations in the previous quarterly figures. Net profit increased to 1.1 billion euro, compared with 751 million euro in the second quarter.
Two well-known customers of ASML, South Korean Samsung and Taiwanese TSMC, recently came forward with figures pointing to the continued high demand for advanced chips. ASML provides the equipment with the state-of-the-art EUV machines that makes it possible to create much smaller and more powerful semiconductors than previously possible.
According to Roger Dassen, the increase in turnover is partly due to chip machines which were delivered in the previous quarter, but whose output is only now included in the quarterly results. That wind for ASML also speaks of the amount of orders it received. All orders received together amount to almost EUR 2.9 billion, compared with EUR 1.1 billion in the previous quarter.
Logistics problems due to the pandemic are no longer on the agenda, says Dassen in an interview published by ASML. For the whole of 2020, the company is based on a turnover forecast at the beginning of the year, before the worldwide outbreak of the virus.
Nevertheless, there are also uncertainties that ASML has to deal with. For example, a slow recovery after the economic downturn due to the pandemic can eventually also affect technology companies. In addition, the increasing tensions between China and the United States play a role.
For example, the US recently imposed trade sanctions against China’s largest chipmaker, who is also a customer of ASML. This means, according to ASML, that direct deliveries of machinery from the Netherlands to that Chinese customer can continue, but that direct deliveries of parts from the USA require an export licence. However, these are machines of the’ older ‘ generation. For the export of EUV machines, ASML is still waiting for a Dutch export licence for China.