AMSTERDAM (Reuters) – Dutch semiconductor equipment maker ASML Holding NV expects sales to mainland China to pick up for the remainder of 2023 following a dip in the first quarter, it said on Wednesday.
The remarks by finance chief Roger Daasen come after the company reported better than expected first quarter results.
ASML’s sales in mainland China, its third biggest market after Taiwan and South Korea, have been the subject of a high profile geopolitical tug-of-war. Washington is seeking to slow Beijing’s technological and military advances by undermining its ability to make advanced computer chips.
That means restricting chip manufacturing equipment, and on March 8 the Dutch government confirmed it would align with the U.S. and introduce new rules by this summer restricting exports of some equipment made by ASML as potentially having “dual use” military applications.
Daasen reiterated that would affect one slice of potential exports to mainland China, but demand from chip makers who make slightly older chips remains strong.
“Domestic China accounts for more than 20% in our backlog,” despite a dip in first quarter sales to about 8% of the company’s total, he said in a statement accompanying the earnings.
“That means you will see a significant pick up of the sales into domestic China for the quarters to come this year.”
(Reporting by Toby Sterling; Editing by Mark Potter)
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Source: The Print
