© ASML

Chip machine manufacturer ASML, headquartered in Veldhoven, has once again had a strong quarter, with higher profits and sales. There is much more demand for machines with the latest EUV technology. With these machines, chips can become even smaller, faster and more powerful. The major players on the world market – such as Intel, Samsung, and TSMC – are in need for these machines for their own growth.

ASML’s turnover increased to more than 2.4 billion euros, 600 million euros more than a year earlier, 300 million more than in the previous quarter and 200 million more than expected.

Revenue for 2017 as a whole will be about 25% higher than in 2017, the company believes. In 2018, this growth could continue, helped by the 5.7 billion euros of orders that are still on the shelf. For the fourth-quarter of 2017, ASML expects net sales around EUR 2.1 billion, a gross margin around 44 percent, R&D costs of about EUR 315 million.

CEO Peter Wennink:

“ASML today reports third-quarter net sales that exceed our guidance, partially due to the revenue recognition of an additional EUV system, showing strong demand across the entire product portfolio. With our fourth-quarter guidance, we are confirming our view that 2017 net sales will be at least 25 percent higher than 2016 net sales. Our current view is that the positive business environment that we are seeing today will continue in 2018, supported by our strong backlog of 5.7 billion euros, which is driven by all product categories.”

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Author profile picture Bart Brouwers is co-founder and co-owner of Media52 BV, the publisher of innovationorigins.com.