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ASML sees decade of growth, $28-35 billion revenues by 2025

ASML sees decade of growth, $28-35 billion revenues by 2025
ASML sees decade of growth, $28-35 billion revenues by 2025   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">AMSTERDAM</span> -<span class="caps">ASML</span> Holding NV, one of the key suppliers to computer chip makers, increased its financial forecasts on Wednesday and said it would have revenue growth of around 11% annually through 2030 amid booming demand for its products.</p> <p>“We feel very comfortable with these numbers” Chief Executive Peter Wennink said at a presentation to investors, adding that they did not include possible extra demand for chips due to U.S., Chinese and European drives for “technological sovereignty.”</p> <p>In a market update, <span class="caps">ASML</span> estimated revenue would hit 24 to 30 billion euros ($28 billion-35 billion) in 2025 with gross margins up to 55%. That compares with the previous forecast of a 15-to-24 billion euro range in the same year, at gross margins of at least 50%.</p> <p><span class="caps">ASML</span> says it is benefiting from what it termed “global megatrends in the electronics industry” that will lead to 7.4 percent annual growth for chipmakers, with <span class="caps">ASML</span> taking a relatively larger share.</p> <p>The presentation comes as semiconductor makers scramble to address a global chip shortage and expand to meet future demand. <span class="caps">ASML</span> is operating at maximum capacity to supply major chip makers such as <span class="caps">TSMC</span>, Samsung and Intel.</p> <p>Wennink said the company is building enough capacity even for demand scenarios that go beyond the high end of its 2025 forecasts.</p> <p>“We want to make sure we are not in the situation where we are today, where we simply cannot supply our customers with what they want.</p> <p><span class="caps">ASML</span> makes lithography systems, large machines that use energy beams to map out the tiny circuitry of computer chips. Its most cutting-edge tools cost 160 million euros each and sit at the heart of semiconductor fabrication plants.</p> <p>At second quarter earnings in July, <span class="caps">ASML</span> forecast a 35% increase in sales to nearly 19 billion euros in 2021, at gross margins of better than 50%, putting it past the lower end of its 2025 range of goals.</p> <p>The company’s stock has reflected its strong outlook with a market capitalization around 272 billion euros, making it Europe’s largest technology company.</p> <p>Shares declined 1.9% to 652 euros in Amsterdam by 1534 <span class="caps">GMT</span>. Despite a sell-off in the past week, <span class="caps">ASML</span> shares are up 66% in the year to date and more than 100% in the past year, strongly outperforming the sector.</p> <p>($1 = 0.8537 euros)</p> </div>