Citi: ASML's Order Visibility Improves, with 2028 Expansion and Profit Margins in Focus

According to ME News, on October 14 (UTC+8), Citigroup analysts stated that Dutch semiconductor equipment manufacturer ASML plans to expand its chip manufacturing equipment capacity, and that interest from some customers in placing orders for 2029 and 2030 indicates improving visibility into future demand. The Citigroup analysts noted that market discussions around ASML’s stock are increasingly shifting toward the scale of capacity expansion beyond 2028, as well as how higher equipment prices and increased adoption of advanced lithography machines could boost the company’s profit margins.
ASML's CFO Roger Dassen stated that the company has completed pricing negotiations with its major customers, and the impact of these price adjustments is expected to gradually materialize starting in 2027. Citigroup believes that as customers gain greater visibility into their long-term equipment procurement needs, market focus on ASML is shifting from short-term order performance toward longer-term capacity growth potential, as well as the margin expansion opportunities driven by sales of high-end equipment and pricing changes. (Jinshi) (Source: ODAILY)