ASML President Of China Revealed Strong Growth: Facing Export Control Challenges Will Still Support Customers

ASML has a strong growth in China's mainland market.According to Shen Bo, Global Vice President of ASML and President of China, by the end of 2023, ASML's optical machine in China plus a measured machine installation of nearly 1,400 units.This number has increased significantly compared with last year, reflecting the continued demand for ASML products in the Chinese market.

Shen Bo also said that last year ASML's global net sales reached 21.2 billion euros. It is expected that the company's global sales will increase by 30%to more than 27 billion euros.This growth is mainly due to the strong demand in the Chinese market.According to ASML's financial report, as of the first three quarters of September 30, ASML global net sales reached 20.321 billion euros, while the Chinese region revenue was about 5.267 billion euros in the same period, accounting for about 25.91%.Among them, the proportion of sales revenue from mainland China in the third quarter accounted for 24%of the second quarter (sales of about 1.345 billion euros), almost doubled to 46%(sales of about 2.442 billion euros).

Regarding the growth of the market in mainland China, Shen Bo explained that in the past two years, affected by factors such as production capacity, ASML has basically maintained a global customer delivery rate of about 50%.This year, there are more delivery in the Chinese market, mainly because some global customers with greater production capacity are more sensitive to industry fluctuations. When the industry's prosperity declines, these customers will choose to slow down production capacity construction and equipment procurement progress.However, even in the face of industry fluctuations, mainland Chinese customers 'demand for us is still delivering the goods ordered by the previous two years, and the time node of other customers' demand time has changed.Therefore, in the end, the result of the market in mainland China has risen relatively.

Shen Bo also revealed ASML's future production capacity planning.He said that our judgment on its own production capacity is the goal of equipment production capacity of 500-600 deep-ultraviolet (DUV) per year at the end of 2025 or early 2026.This plan will further enhance the competitiveness of ASML in the Chinese market.

However, it should be noted that in September this year, the latest Dutch chip export control measures came into effect. According to ASML's previous response, from January 1, 2024, ASML will basically not be transported to Chinese customers Twinscan NXT: 2000i and subsequent launch launchExport license of the infiltration light -engraved system.Prior to this, the ASML EUV photocalism system had been restricted.In addition, the U.S. Department of Commerce (BIS) also released a number of rules, updated and expanded a series of rigorous export control measures for advanced semiconductors and its manufacturing equipment released on October 7, 2022.These new regulations may have a certain impact on ASML's business in the Chinese market.

Shen Bo admits that we are still studying for new export control policies.Generally speaking, if we are based on our business in China this year, the business next year will be affected by about 10%-15%.China's market demand next year is still quite strong.In the short term, we feel that we should not have much impact on the overall business volume.From the perspective of the company, by 2030, the overall trend of the industry has been undulating, so the overall trend of the company's sales will not change much.But he also pointed out: We only have some infiltrated products will be put in the scope of export control next year, not all.Even with new export controls, we still have a very large influential business in China.

Despite the challenges such as export control, Shen Bo said: For ASML, as long as we are in a framework of legal compliance, we will do our best to support all customers.This shows that ASML will continue to be committed to meeting the needs of Chinese customers and maintain close cooperation with the Chinese market.