ASML, a leading global supplier of computer chip equipment, is expected to announce a large number of new orders in its second-quarter financial report on Wednesday, as customers expand capacity in response to the surging demand for artificial intelligence chips.
Another point of concern is whether Chinese companies will continue to purchase large quantities of equipment used to produce older generation chips, such as those used in electric vehicles, which is a worry for Western policymakers who aim to restrict the purchase of more advanced technologies.
Analysts suggest the company might raise its expectations, as major advanced chip manufacturers, including TSMC, are likely to increase and expedite their equipment purchases. TSMC, which makes chips for Nvidia and Apple, will report its earnings on Thursday.
ASML dominates the market for lithography systems, complex tools that use lasers to help create the tiny circuits on computer chips. It is the only company that produces lithography systems using extreme ultraviolet (EUV) wavelengths, which TSMC needs to manufacture the most complex chips for smartphones and AI applications.
Analyst Kevin Wang from Mihuzo said, "We expect ASML's order amount in the second quarter to approach 5 billion euros, exceeding market expectations," and that TSMC has strong demand for ASML's EUV product line.
This is the first earnings report under ASML’s new CEO, Christophe Fouquet, who has taken the helm of Europe's largest tech company and is navigating it through the US-China chip dispute.
ASML, valued at around 400 billion euros (approximately 437 billion dollars), has stated that 2024 will be a 'transition' year with flat business, followed by a robust rebound in 2025, driven by demand for its most advanced tools.
