Lithography machine supplier ASML, which generated revenues of 18.6 billion euros last year, is expected to remain strong this year

Reporter | Peng Xin

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On January 19, ASML, a Dutch semiconductor lithography equipment manufacturer, released its financial report for the fourth quarter and full year of 2021. In the fourth quarter of 2021, ASML achieved net sales of €5 billion, gross margin of 54.2% and net profit of €1.8 billion.

For the full year 2021, ASML achieved net sales of €18.6 billion, gross margin of 52.7% and net profit of €5.9 billion.

ASML added €7.1 billion in new orders in the fourth quarter, of which €2.6 billion came from orders for 0.33 NA and 0.55 NA EUV lithography systems, and €6.3 billion in revenue for the full year came from 42 EUV systems.

ASML expects net sales of approximately €3.3 billion to €3.5 billion in the first quarter of 2022, a decrease of 33-35% sequentially, and gross margin of approximately 49%, down 5% year-over-year, excluding approximately €2 billion in sales to be shipped in the first quarter, which will be confirmed after the client completes formal acceptance testing. In addition, R&D costs will reach approximately EUR 760 million and marketing expenses of APPROXIMATELY EUR 210 million in the first quarter.

For the full year 2022, ASML expects net sales to increase by about 20 percent year-over-year, and said the previous fire at the Berlin plant would not have a significant impact on system shipments.

ASML is one of the few companies in the world that manufactures chip lithography machines, mainly supplying downstream foundries. Lithography machines are critical in chip production, with only ASML currently available for extreme ultraviolet lithography (EUV), which is mainly used to produce chips for 7nm and more advanced processes.

The company is currently trying to expand the production of lithography machines, and its customers, including chip manufacturers such as TSMC, Samsung, and Intel, are investing heavily in new capacity to try to alleviate the global semiconductor shortage.

"We've experienced many challenges, with market demand growing beyond our capacity and putting our customers under pressure from wafer production." Peter Wennink, president and CEO of ASML, emphasized that the company is helping customers produce wafers earlier through a fast shipping process.