ASML sells huge amount of chip machines to China while it still can

ASML's Q2 figures exceeded analyst expectations. With 6.2 billion euros in sales and a net income of 1.6 billion euros, the Dutch chip machine maker is doing well for itself. The large share of Chinese sales will leave many in Washington puzzled, though.

Compared to the same quarter last year, orders for chip machines are up 24 percent. "We currently see strong developments in AI, driving most of the industry recovery and growth, ahead of other market segments," said CEO Christophe Fouquet.

China shares up sharply this year

The comparison with Q2 2023 offers more striking differences. For example, nearly half of ASML's new systems are going to be used for memory, not logic chips. Whereas the latter accounted for 84 percent of total end-uses last year, that figure is now only 54 percent. Moreover, the net amount from system sales fell from 5.6 billion to 4.7 billion euros, although that is still an improvement over Q1 2024.

The share of sales to China has been on the rise for several quarters. Taiwan bought up half of all ASML systems in Q1 2023, but now China is claiming 49 percent of the total share. This does not include the very latest EUV machines, which may not end up in China due to export restrictions. As a result, it's highly likely more than 1 in 2 ASML scanners are heading to China, as the most expensive options aren't available to it.

ASML-backed university is caught in the middle of U.S.-China chip war | Japan Times |

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