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Dutch ASML tackles backlog with chip-making machines!

The world’s only manufacturer of a machine for making advanced semiconductors reported record orders as chip makers continue seeking to boost their production capabilities despite a recent slowdown in demand.

ASML plans to build 55 of its most advanced machines this year and more than 60 next year.

For the second quarter,

the company reported a 35% rise in sales to 5.4 billion euros, equivalent to $5.5 billion, compared with a year earlier. Profit increased 36% to €1.4 billion.

*ASML tweet on Q2 earnings 


Dutch company ASML, has a big backlog of orders and predicts strong demand for years to come.

Chief Executive Peter Wennink said the company accepted orders totaling €8.5 billion in the three months ended July 3.

He said that the quarterly record signaled that chip makers still want ASML’s equipment despite the recent slowdown in demand that followed a pandemic-era boom, as well as concerns about a possible economic downturn.

Mr. Wennink said the strong demand was a result of a few reasons. One was the long lead time required to build ASML’s most advanced machine, which costs $160 million, weighs 180 tons and requires three Boeing 747s to ship.

Another was that while the need for chips for personal computers and smartphones was dropping, that would be offset by increased demand for semiconductors for high-performance computers and automobiles, among other needs.

  • ASML plans to build 55 of its most advanced machines this year and more than 60 next year. It is evaluating whether it can ramp that up to 90 a year by 2025.

One reason that ASML enjoys a monopoly on making its top product,

is that three huge chip rivals, Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Intel Corp. came together a decade ago to jointly invest in the Dutch company, whose leading-edge technology requires intensive research and development.

  • ASML isn’t immune to problems plaguing other companies.

Mr. Wennink said supply-chain constraints and parts not coming in on time prompted the company to delay some sales to next year. It now expects 2022 sales to rise 10% to €20.5 billion, down from an earlier forecast of 20%.