ASML Boosts Outlook Amid Economic Downturn, Launched €12B Buyback, Explored Acquisitions

ASML Boosts Outlook Amid Economic Downturn, Launched €12B Buyback, Explored Acquisitions
  • ASML Holding N.V. ASML updated its view on demand outlook, capacity plans, and business model at the Investor Day meeting.
  • ASML expects 2025 annual revenue between approximately €30 billion - €40 billion with a gross margin between 54% - 56%.
  • ASML sees 2030 annual revenue between approximately €44 billion - €60 billion, with a gross margin between about 56% - 60%.
  • Also Read: ASML Clocks 10% Net Sales Growth Aided By Strong Net Bookings
  • ASML plans to buy back shares up to €12.0 billion, including up to 2 million shares for employee share plans. 
  • ASML plans to increase ITS annual capacity to 90 EUV and 600 DUV systems (2025-2026) while also ramping High-NA EUV capacity to 20 systems (2027-2028).
  • ASML may conduct acquisitions to meet soaring demand for advanced chips worldwide, Bloomberg reported citing its CEO.
  • That scale of growth necessitates a more extensive supplier base, CEO Peter Wennink.
  • ASML invested 240 billion won ($181 million) in building maintenance and training centers in South Korea by 2024.
  • Some of its biggest customers, South Korea’s Samsung Electronics Co, Ltd SSNLF and SK Hynix Inc, and Taiwan Semiconductor Manufacturing Company Ltd TSM, are in East Asia.
  • Biden administration’s most recent chip curbs could mean an indirect hit to sales of as much as 5%, Wennink said. 
  • “Despite the fact that we are looking at a recessionary environment in 2023, the demand for our products is still higher than what we can make,” he said. There has been no reduction to the backlog in its shipments to the end of next year, he said.
  • Price Action: ASML shares traded higher by 5.24% at $608.10 on the last check Tuesday.

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