Dutch semiconductor equipment maker ASML has reported Q2 earnings that exceeded expectations and raised its full-year sales outlook, citing strong demand from Chinese customers.
The CEO of Europe's largest tech company by market value, Peter Wennink, increased ASML's full-year sales growth forecast to 30%, up from the previous 25%, due to continuing strong demand from Chinese customers who can only buy slightly older equipment because of export control rules.
Despite macroeconomic uncertainties, Wennink said that ASML's strong backlog of around €38 billion ($42.6 billion) provides a good basis to navigate short-term uncertainties.
ASML dominates the market for lithography systems, and its customers are expanding production as it cannot keep up with demand.
Chip makers using ASML's most advanced EUV systems are slowing the pace at which they want equipment delivered, while customers using ASML's second-most advanced DUV product line are still demanding every tool they can get. ASML has never sold EUV machines in China due to export control rules, but it remains a key market.
