FILE PHOTO: Company representatives and government officials cut a ribbon during the opening ceremony of the EUV training center at ASML Holding in Tainan, Taiwan, August 20, 2020. REUTERS/Ann Wang
January 18, 2022
By Toby Sterling
AMSTERDAM (Reuters) – ASML Holding NV, a key supplier to computer chip makers, is expected to report a 12% increase in quarterly net profit on Wednesday and update customers on whether a fire at its factory in Berlin could affect production plans.
Analysts are expecting ASML, Europe’s largest technology company by market capitalisation, to report fourth quarter net profit of 1.51 billion euros ($1.72 billion), up from 1.35 billion euros a year earlier, according to Refinitiv data.
Sales are expected to rise 20% to 5.1 billion euros.
ASML is trying to expand production as its customers – which include TSMC, Samsung Intel – invest heavily in new capacity to try to ease a global semiconductor shortage.
ASML said in September it was benefiting from long-term trends in the electronics industry and should double-digit sales growth in the coming decade.
However, investors received a shock at the start of 2022 when the company suffered a fire at a factory in Berlin.
ASML shipment delays could have a ripple effect on semiconductor markets, but the company’s statements seem to indicate the fire’s damage was limited.
In an initial assessment on Jan. 7, ASML said it expected no disruption to deliveries of its workhorse product, DUV lithography machines, currently used in the manufacture of most of the world’s logic and memory chips.
However, it said it was too soon to say whether there might be any delays in deliveries of its most advanced EUV systems, machines that cost $150 million apiece and are used to map out the circuitry of cutting edge computer chips.
ASML’s shares, which quadrupled over 2018-2021, are down about 9% so far this year.
($1 = 0.8804 euros)
(Reporting by Toby Sterling; Editing by Mark Potter)
Source: One America News Network
