Dutch chip tech leader ASML posts higher profits

Dutch semiconductor tech supplier ASML reported Wednesday an increase in first-quarter sales and profits even as it is caught in the middle of a chip war between China and the United States.

The maker of machines to produce microchips said its net profit almost tripled in the first three months of the year to 1.96 billion euros ($2.1 billion) from 695 million euros over the same period last year.

Sales almost doubled to 6.7 billion euros.

ASML chief executive Peter Wennink said he expects strong growth to continue this year, with net sales rising by more than 25 percent.

Last month, the Dutch government announced plans for new export restrictions on Deep Ultraviolet (DUV) lithography, a technique for printing tiny circuits on microchips in which ASML specialises.

The aim of the export controls was to prevent military use, and to protect the Netherlands’ “unique and leading position” in such technologies, the government said.

The Netherlands had been pressed by the United States to impose such curbs in order to restrict Chinese access to the technology.

Wennink said the company continues to see “mixed signals on demand from the different end-market segments as the industry works to bring inventory to more healthy levels.”

“Some major customers are making further adjustments to demand timing while we also see other customers absorbing this demand change, particularly in DUV at more mature nodes,” he added.

Nevertheless, “overall demand still exceeds our capacity for this year and we currently have a backlog of over 38.9 billion euros”, the CEO said.

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