Supply of Next-Generation Core High-NA Equipment
Concerns Over Uncertainties Due to Tariff Announcements
"Market Dynamics Driven by AI Are Positive"
Dutch semiconductor equipment company ASML announced on the 16th that it recorded net sales of 7.742 billion euros (approximately 12.5 trillion KRW) and net profit of 2.355 billion euros (approximately 3.8 trillion KRW) in the first quarter of this year. Sales and net profit decreased by 16.4% and 12.6%, respectively, compared to the fourth quarter of last year. However, due to ASML's business pattern of receiving pre-orders from customers and manufacturing equipment accordingly, it typically experiences lower performance in the first quarter and higher performance in the fourth quarter.
ASML is the sole producer of extreme ultraviolet (EUV) lithography equipment, which is essential for semiconductor fine processes. It is known as the "super subcontractor" in the semiconductor industry. Global companies such as Samsung Electronics and SK Hynix have fiercely competed to be the first to import ASML's EUV lithography equipment. In particular, ASML has maintained solid performance by exporting a large amount of equipment to China, which is actively developing its semiconductor industry.
In the first quarter of this year, ASML delivered the world's fifth "High Numerical Aperture (High-NA) EUV lithography equipment," which was purchased by three customers. High-NA equipment is an enhanced version of the current state-of-the-art EUV lithography equipment, capable of engraving finer circuit patterns onto wafers. It is regarded as a key technology for implementing next-generation semiconductor processes below 2 nanometers (nm). Intel was the first to adopt this equipment, and Samsung Electronics has also imported it to its Hwaseong campus to prepare for mass production of the 2nm process.
ASML highlighted several variables that could impact future performance beyond the first quarter results. These include uncertainties created in the market due to the U.S. announcement of item-specific and reciprocal tariffs, as well as developments in the Chinese semiconductor market, which has announced the direct development of EUV lithography equipment.
Christoph Fruche, ASML's Chief Executive Officer (CEO), stated, "The recent tariff announcements have increased macroeconomic uncertainties, and a variable situation is expected to continue for some time." He added, "As previously stated, artificial intelligence (AI) continues to be a key driver of growth in the semiconductor industry. The changes in market dynamics brought by AI positively affect some of ASML's customers, which will be reflected as both an upside factor and a downside risk for ASML's 2025 sales."
CEO Fruche also forecasted second-quarter net sales of 7.2 billion to 7.7 billion euros, with a gross margin of 50% to 53%. Research and development (R&D) expenses and selling and administrative expenses are expected to be approximately 1.2 billion euros and 300 million euros, respectively. While the total net sales for this year are projected to remain between 30 billion and 35 billion euros, with a gross margin of 51% to 53%, there is potential for variability.
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