ASML's annual report indicates that export restrictions have resulted in sluggish demand, and the company anticipates a 20% decrease in sales in China this year.
1min read ASML.US stated in its annual report released on Wednesday that the uncertainty of export controls was a factor weakening customer demand in 2024. asml is affected by the US-led continuous export restrictions on China. ASML said that more Chinese entities (accounting for 36% of sales last year) are now restricted, and the company faces the risk of increasingly complex restrictions and possible responses. It said: "The macroeconomic uncertainty - including (over) technology sovereignty and export controls - led some customers to remain cautious and control capital expenditure."ASML's customers include tsmc, Samsung, SK Hynix, smic, and Intel. The company said it expects a 20% decline in sales in China in 2025.The company reiterated its sales forecast for 2025 at 30-35 billion euros, up from 28.3 billion euros (30.24 billion dollars) in 2024, as the prosperity of AI boosted demand for its EUV lithography systems, which are necessary for manufacturing computer chip circuits.The company also said it would appoint former Dutch Minister of Social Affairs Karien van Gennip to its supervisory board. Other politicians have also joined the company recently, with former French Finance Minister Bruno Le Maire appointed as a special adviser to the executive board and former French Deputy Minister of Economy Frank Heemskerk appointed as head of global affairs.