'Semiconductor Barometer' ASML Posts Strong Q3 Results: "No Revenue Decline Expected Next Year"

Semiconductor Tariff Agreement Between U.S. and Europe a Positive Signal
Tensions With China Remain a Variable... Revenue Share Expected to Decline
"Next Year's Performance Will Not Be Lower Than This Year"

Christoph Pueke, CEO of Dutch semiconductor equipment company ASML. Photo by Reuters Yonhap News

ASML posted third-quarter results that exceeded expectations amid a surge in artificial intelligence (AI) investments. As the sole producer of extreme ultraviolet (EUV) lithography equipment, ASML serves as a barometer for the global semiconductor industry.

According to the Wall Street Journal (WSJ) on October 14 (local time), ASML’s new orders in the third quarter reached 5.4 billion euros (approximately 8.9 trillion won), more than doubling from the same period last year. This figure also surpasses the 5.36 billion euros estimated by market research firm Visible Alpha. Of this, new orders for EUV lithography equipment, which is essential for manufacturing high-performance semiconductors for AI computing, amounted to 3.6 billion euros.

Third-quarter revenue was 7.52 billion euros, and net profit reached 2.13 billion euros, both exceeding market expectations. Gross profit totaled 3.88 billion euros, with a gross margin of 51.6%, hitting the upper end of the company’s outlook.

Christoph Pueke, CEO of ASML, explained, "AI-related investments are steadily increasing, and our customer base is expanding."

The semiconductor tariff agreement between the United States and Europe has also brightened the company’s outlook for next year. Just three months ago, ASML had stated that it was difficult to guarantee growth for the coming year, but after the European Union (EU) recently reached a 15% semiconductor tariff agreement with the United States, the company revised its outlook.

CEO Pueke added, "Next year’s revenue will not be lower than this year’s," and said, "We plan to provide more specific guidance in January next year."

However, U.S.-China tensions remain a source of uncertainty. China accounted for 36% of ASML’s revenue last year. In July, CEO Pueke projected that China’s share of total revenue would fall below 25% this year.

Regarding this, he stated, "In 2026, ASML’s revenue from China will decrease significantly compared to 2024 and 2025."

Meanwhile, ASML maintained its annual performance guidance for 2025. The company expects this year’s annual revenue to increase by about 15% year-on-year to 32.5 billion euros, with a gross margin reaching 52%.