ASML's sales to China surged 109% in the third quarter compared with the previous three months, according to financial results released on Wednesday. China accounted for 23% of ASML's machine sales, up from 14% in the second quarter. The Netherlands-based semiconductor equipment company expects China to account for about 20% of total sales this year.
The increase came despite mounting US pressure for tighter export restrictions on less advanced chipmaking machinery. Dutch Prime Minister Rob Jetten faces pressure from Washington to tighten restrictions on sales of chipmaking machines to China. Jetten expressed confidence in a Bloomberg interview last month that the Netherlands would reach an agreement with the United States regarding Washington's proposed Match Act. The proposed legislation aims to further restrict ASML's ability to export less advanced lithography machines to China. Sources familiar with the matter previously said Jetten was scheduled to visit China next spring.
ASML raised the lower end of full-year 2026 sales guidance to €44 billion (US$49.25 billion), despite the geopolitical pressures. ASML set the gross margin forecast at around 56%, the upper end of the earlier range. Chief Financial Officer Roger Dassen said ASML expected fourth-quarter revenue of between €14.2 billion and €15.2 billion. Dassen said sales momentum was building very strongly.
ASML's 2026 revenue is expected to grow by 36%, mainly because of robust demand for advanced extreme ultraviolet (EUV) machines. Sales of EUV machines are set to rise by over 45% this year. Dassen said non-EUV business revenue was expected to expand by 20%. Dassen said installed base business revenue was expected to rise by 50%.
Growth momentum is expected to continue into 2027 and 2028. ASML said a planned 30% capacity expansion in low-NA EUV systems over the next two years would not be enough to meet demand. Chief Executive Christophe Fouquet said ASML had to expand capacity further and was examining ways to do so, especially in 2028 and beyond. Fouquet said ASML's customers were also planning further capacity expansions for the coming years. Fouquet said many customer discussions were shifting beyond 2027, with substantial order intake for 2028. Fouquet also cited strong interest in placing orders for 2029 and sometimes even 2030.
ASML shares were up by more than 1% in Amsterdam at around noon local time following the announcement.
ASML's Q3 China Sales Surge 109% Amid US Export Pressure
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Summary
ASML's Q3 China sales jumped 109% from the prior quarter, making up 23% of its machine sales. The Dutch firm sees China at around 20% of total sales this year, despite US export curbs. ASML now forecasts 2026 sales of €44 billion, fueled by demand for EUV tools. On-chain data shows growing interest in altcoins to watch as crypto markets react to global tech trends.
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