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ASML expects growth in 2026, US-China row to continue, CEO says

Published 10/22/2024, 05:49 AM
Updated 10/22/2024, 05:55 AM
© Reuters. FILE PHOTO: ASML headquarters is seen in Veldhoven, Netherlands August 30, 2018. REUTERS/Piroschka van de Wouw//File Photo
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LONDON (Reuters) -The CEO of leading computer chip equipment maker ASML (AS:ASML) said on Tuesday he expects that 2026 will be a growth year for the company and that the U.S. government will continue to push for further restrictions on its exports to China.

Christophe Fouquet's remarks come a week after ASML shook markets with a warning it will see lower growth in 2025 because apart from chips related to AI, electronics markets are weak.

ASML's biggest customer is TSMC of Taiwan, which makes chips for Nvidia (NASDAQ:NVDA) and is building several new factories. ASML still expects its sales to grow in 2025, albeit at a slower pace.

"We also expect 2026 to be a growth year, but it's too early to quantify that with very high accuracy," Fouquet said.

Shares rose 1.8% to 668.60 euros at 0851 GMT.

Fouquet said he expects pressure on the company's exports to China will continue regardless of who wins the U.S. presidential election.

"If you look at the geopolitical landscape, I think it's clear that the United States will continue to apply pressure on their side for more restriction."

ASML sees future China sales at 20% of its total, down from 50% in recent quarters, for the older equipment the company sells that does not fall under restrictions.

He said that the Netherlands and Europe are debating whether further restrictions fall under national security or trade policy, and whether they would even work.

"One of the debates is, is it really about national security?" he said, noting the economic competition between the U.S. and China.

© Reuters. FILE PHOTO: ASML headquarters is seen in Veldhoven, Netherlands August 30, 2018. REUTERS/Piroschka van de Wouw//File Photo

"The other debate you start to see ... is does it help us or does it hurt us? I see a lot of companies in the U.S. that start to also ask that question."

Fouquet was speaking at a Bloomberg technology conference in London.

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