In a recent interview on November 2nd, ASML’s Global Vice President and China Regional President, Shen Bo, unveiled remarkable insights into ASML’s impressive growth in the Chinese semiconductor market. ASML, a prominent player in the semiconductor equipment industry, has deep roots in China’s domestic market, with plans to install approximately 1,400 lithography machines and measuring equipment in the country by the end of 2023. This article dives into the details shared by Shen Bo, emphasizing ASML’s expanding presence in China and its future projections.
1. ASML’s 30-Year Journey in China
ASML’s history in mainland China traces back to 1988 when the company delivered its first step-and-scan lithography machine to the country. Over the past three decades, ASML has fostered a strong presence in China’s semiconductor landscape. The company’s commitment to innovation and reliability has led to its status as a trusted partner, which is reflected in the upcoming installation of 1,400 units of lithography machines and measuring equipment by the end of 2023.
2. China’s Significance in ASML’s Global Market
Today, mainland China stands as one of ASML’s most significant markets. The third-quarter financial report for this year revealed that mainland China accounted for an impressive 46% of ASML’s total sales. This substantial growth in China’s market is a testament to ASML’s dedication and adaptability.
3. Capacity Constraints and Deliveries
Shen Bo highlighted the challenges of the past two years, particularly capacity constraints. ASML faced difficulties maintaining a consistent delivery rate, hovering around 50% for global customers. However, in the current year, the mainland Chinese market witnessed higher deliveries. This increase can be attributed to a unique aspect of Chinese customers’ behavior.
4. Resilience of Chinese Customers
Unlike some of ASML’s global customers with larger capacities, who are sensitive to industry fluctuations and tend to slow down expansion during downturns, Chinese customers have displayed remarkable resilience. Many are still in the process of capacity expansion, particularly in mature processes. Their demand remains strong, even in the face of industry fluctuations.
Shen Bo elaborated, “Even in the face of industry fluctuations, our customers in mainland China still require us to deliver the orders placed in the past two years as soon as possible, while the demand timelines of other customers have changed. Therefore, the end result is the relatively increased market share in mainland China.”
5. ASML’s Global Sales Projection
ASML’s global net sales amounted to 21.2 billion euros last year, and the company is on track for substantial growth. It is expected that ASML’s global sales will increase by 30% in the 2023 fiscal year, reaching over 27 billion euros. This remarkable projection underscores ASML’s prominent role in the semiconductor industry.
6. Future Prospects
According to ASML’s latest quarterly report, the global semiconductor industry is poised to stabilize in the next two years. This stabilization will coincide with an increase in existing wafer fab capacities and the introduction of new wafer fabs. The semiconductor equipment industry is expected to experience significant growth, reaching a “high tide” of demand.
Shen Bo also shared ASML’s production capacity plans, aiming to produce 500-600 units of deep ultraviolet (DUV) equipment annually by the end of 2025 or the beginning of 2026. This underscores ASML’s commitment to meeting the growing demands of the semiconductor industry.
7. Frequently Asked Questions (FAQs)
A: ASML plans to install approximately 1,400 lithography machines and measuring equipment in China by the end of 2023.
A: ASML delivered its first step-and-scan lithography machine to mainland China in 1988, marking over 30 years of operation in the domestic market.
A: According to the third-quarter financial report, mainland China accounts for an impressive 46% of ASML’s total sales.
A: Mainland Chinese customers are relatively less sensitive to industry fluctuations and continue their capacity expansion, even during downturns, resulting in higher deliveries.
A: ASML projects a 30% increase in global sales, reaching over 27 billion euros in the 2023 fiscal year.
A: ASML aims to produce 500-600 units of deep ultraviolet (DUV) equipment annually by the end of 2025 or the beginning of 2026.
8. Conclusion
Shen Bo’s recent revelations about ASML’s expansion in China’s semiconductor market are a testament to the company’s commitment to innovation and adaptability. The remarkable growth and future projections underscore ASML’s significant role in the global semiconductor industry. With a resilient customer base in China and ambitious production capacity plans, ASML is poised to meet the rising demand for semiconductor equipment.
Related:
[…] ASML Remarkable Growth in China’s Semiconductor Market […]