The Dutch semiconductor industry equipment company ASML reported a 39.3% surge in its net profit for 2023, reaching €7.8 billion. This comes in the context of international tensions as Western nations try to cut ties with China.
The firm’s turnover hit €27.6 billion, marking a 30% increase from the previous year. ASML, based near Eindhoven, has maintained its cautious expectations for a similar turnover this year.
Peter Wennink, CEO of ASML, acknowledged that “The semiconductor industry continues to operate through the downturn. While our customers are still uncertain about the shape of the semiconductor market recovery this year, there are positive signs.”
Among the Dutch giant’s customers are electronic chip producers such as TSMC, Samsung, and Intel. ASML is one of the leading global manufacturers of advanced chip-making equipment, powering everything from mobile phones to cars.
However, the semiconductor industry has become a geopolitical battleground as the West seeks to limit China’s access, fearing the chips could be used to construct advanced weapons.
Earlier this month, ASML announced that in 2023 the Dutch government revoked an export licence for some of its machines due to American pressures in this strategic sector. At the time, Beijing criticised what it described as “intimidating behaviour” from Washington, claiming it “seriously violated international trade rules” and labelling export restrictions as “technological terrorism.”
In light of trading tensions with China, concerns also arise that Beijing might introduce its own export controls on gallium and germanium, two rare metals vital for semiconductor manufacturing.
Despite these challenges, senior officials have regularly emphasised that the company is well-positioned to weather the geopolitical storm.
ASML has predicted steady sales in 2024 which it sees as a “transition year”, before noticing a “significant growth” in 2025.
