The Dutch company warns that the tariffs announced by Trump create uncertainty among its customers, although the demand for EUV lithography remains strong.
The Dutch company ASML, a global leader in chip manufacturing machinery, has reported results below expectations for the first quarter of 2025. While its net sales grew by 46% year-over-year to reach €7.7 billion ($8.7 billion), net orders during the quarter were only €3.9 billion ($4.4 billion), nearly €1 billion below analysts’ forecasts, who expected €4.8 billion.
The decline in orders coincides with the recent announcement of new tariffs by the Trump Administration, which has generated a wave of uncertainty among ASML’s key customers, particularly in sectors more exposed to the international semiconductor supply chain.
An industry driven by Artificial Intelligence, but facing trade friction
Despite the challenges, ASML’s CEO, Christophe Fouquet, expressed optimism: “Our conversations with customers continue to support the expectation that 2025 and 2026 will be years of growth.” However, he acknowledged that the tariffs proposed from Washington have introduced “a new macroeconomic dynamic that may benefit some customers while posing downside risks for others.”
The main driver of demand, according to Fouquet, remains the AI boom, which is transforming the market and increasing the need for advanced 3nm and 5nm chips, the manufacturing of which requires extreme ultraviolet (EUV) lithography equipment, where ASML maintains its global monopoly.
During the quarter, the company sold 73 new lithography systems and 4 used systems, a lower number than the 119 new and 13 used sold in the last quarter of 2024.
Four fronts of tariff impact
ASML’s CFO, Roger Dassen, explained that the new tariffs could affect the company in four distinct areas:
- Tariffs on complete equipment shipped to the U.S.
- Tariffs on parts and tools required for field operations.
- Tariffs on imported components used in their own U.S. factories.
- Tariffs imposed by third countries on exports from the U.S.
“We are actively working with the entire ecosystem to minimize the impact. But until we understand the exact details of the measures, it is difficult to anticipate the magnitude,” Dassen noted in a video released after the results presentation.
Trump threatens tariffs of 25% or more
Although the tariffs have not yet been officially implemented, President Trump recently reiterated that they will be announced “this week” and could start at 25% or even gradually increase over the course of a year. This statement has raised alarms among European and Asian manufacturers, especially in a time of tension in the chip industry due to the increasing technological rivalry between the U.S. and China.
The market responds cautiously
Following the release of the results, ASML’s stock fell about 5% in the stock markets, reflecting investor concerns about the short-term future, despite the company’s strong position in the market.
ASML maintains its sales forecast for all of 2025 between €30 billion and €35 billion ($34 billion to $40 billion), noting that structural opportunities remain, although the political and economic context requires caution.
Source: DCD