Asml, revenue falling and demand worse than anticipated | EUROtoday

Get real time updates directly on you device, subscribe now.

Asml, the Dutch maker of apparatus for the chip trade, reported a decline in year-on-year internet revenue within the first quarter of 2024 amid worldwide tensions with China. Net revenue fell to 1.2 billion euros from practically 2 billion within the first quarter of 2023 however nonetheless beat analysts' expectations.

ASML shares fell 7.3% on Tradegate from Tuesday's shut in Amsterdam.

CEO Peter Weennink recalled that 2024 is a “transition year” for the group earlier than the “significant growth” anticipated for 2025. “Our outlook for the full year 2024 remains unchanged,” he added, “the second half of the year is expected to be stronger than the first, in line with the continued recovery of the sector after the economic slowdown.” Revenue stood at 5.3 billion – according to expectations – with a gross margin 51% above expectations, Weennink underlined.

The group recorded a drop in orders in a single yr, to three.6 billion in comparison with 3.75 billion in the identical interval final yr. In the final quarter of 2023 they amounted to 9.2 billion. These orders are decrease than the expectations of analysts who had forecast orders of round 5 billion.

Asml, based mostly in Veldhoven within the southern Netherlands, is among the world's main producers of apparatus to make cutting-edge chips that energy many merchandise from cell phones to automobiles. But the semiconductor trade is on the middle of a geopolitical battle with China.