- Chip-machine maker trying to get clients to upgrade factories
- ASML touting new technology for smaller, faster chips
ASML Holding NV, Europe’s largest semiconductor-equipment maker, reported a 5.2 percent increase in second-quarter sales and signaled orders for a crucial new type of machinery are starting to come in.
Sales rose to 1.74 billion euros ($1.92 billion), the Veldhoven, Netherlands-based company said in a statement Wednesday. Analysts had predicted 1.72 billion euros, the average of estimates compiled by Bloomberg.
ASML is trying to convince clients such as Intel Corp., Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. to upgrade their machinery amid a recovering demand for chips used in smartphones. The Dutch company is touting extreme ultraviolet lithography systems, which can produce smaller chips while increasing capacity and speed. Last month, ASML agreed to buy Hermes Microvision Inc. for about $3.1 billion as part of its EUV push.
“EUV development and orders are going well, so long term that’s positive,” Marcel Achterberg, an analyst for Bank Degroof Petercam, said by phone.
Shares of ASML advanced 1.4 percent to 95.85 euros at 9:08 a.m. in Amsterdam. They had risen 15 percent this year through Tuesday.
Last quarter, customers ordered four EUV systems, bringing the backlog to 10 units, ASML said. The company expects additional orders in the second half. TSMC, the world’s largest contract chipmaker, said last week it plans to increasingly use EUV technology in its chip manufacturing.
“Several customers are now placing EUV orders,” including makers of both memory and logic chips, ASML Chief Executive Officer Peter Wennink said in a video on the company’s website.
ASML forecast third-quarter sales of about 1.7 billion euros, compared with the average analyst estimate of 1.74 billion euros. Second-quarter net income declined 4.3 percent to 354 million euros.
The company said it will pause its share-buyback program for a few quarters as it works on the Hermes acquisition. ASML continues to expect to complete its 2016-2017 stock-repurchase plan.