asml's china sales defy euv ban in q1 2025
Veldhoven, Monday, 21 April 2025.
asml saw a surge in q1 2025 sales in china, reaching 27% of its total revenue. this growth is fueled by strong demand for duv lithography systems, even as access to asml’s euv technology remains restricted for china. despite these limitations, huawei is reportedly testing its own euv lithography system at its dongguan facility, with trial production expected by q3 2025 and mass production in 2026. this situation highlights the complex interplay between market demand, technological restrictions, and china’s ambitions in chip manufacturing.
asml’s market resilience
ASML’s Q1 2025 results highlight the company’s resilience in a complex global market [1]. Roger Dassen, ASML’s CFO, noted the market’s resilience is stronger than anticipated [1]. ASML expects net sales between €30 billion and €35 billion for 2025, with gross margins between 51% and 53% [7]. First quarter net sales reached €7.7 billion, with a gross margin of 54% [8]. These figures demonstrate ASML’s strong financial performance amid geopolitical and technological challenges [8].
impact on asml’s stock
The surge in China sales and strong overall performance positively impacts ASML’s stock [4]. ASML’s stock price increased on April 19, 2025, driven by increased sales in China [4]. ASML is a key player in the semiconductor industry [3]. Demand for ASML’s DUV machines remains robust in China, despite U.S. export restrictions [1]. This sustained demand reinforces ASML’s market position and revenue streams [1].
technological leadership
ASML continues to advance its technology [8]. The company rolled out its NXE:3800E system at full specification and made advancements in High NA EUV systems [8]. These advancements received positive feedback from industry leaders like Intel and Samsung [8]. ASML’s CEO, Christophe Fouquet, remains skeptical about China’s ability to produce EUV lithography machines independently in the near future [1]. This skepticism underscores ASML’s current technological advantage [1].
order book and future outlook
ASML’s Q1 2025 earnings call highlighted a solid order book and positive outlook [8]. Net system bookings in Q1 were €3.9 billion [8]. ASML anticipates revenues between €30 billion and €35 billion for 2025, with further growth expected in 2026 [8]. These projections factor in potential impacts from tariff uncertainties [8]. ASML’s management decided to report order disclosures annually due to market volatility [7]. This decision indicates a focus on long-term stability and strategic planning [7].