ASML's Annual Report Says Export Curb Worries Hit Customer Spending in 2024
ASML, the computer chip equipment maker, reported that uncertainty over export controls had weakened customer demand in 2024, with macroeconomic uncertainty including technological sovereignty and export controls leading customers to remain cautious and control capital expenditure. The company faces ongoing risk from increasingly complex restrictions and possible countermeasures as it tries to navigate China's tightening export curbs. Despite this, ASML repeated its 2025 sales forecasts of 30-35 billion euros, which include the AI boom boosting demand for its EUV lithography systems.
- The increasing reliance on Chinese entities subject to export restrictions highlights the vulnerability of global supply chains in the high-tech sector, where precision and predictability are crucial for innovation.
- Will ASML's ability to adapt to these changing regulations, coupled with the growth of the AI market, be sufficient to offset the negative impact of export controls on its sales projections?