Introduction
ASML, the world’s leading supplier of semiconductor lithography machines, is expanding its footprint in China with a new repair and reuse center in Beijing, set to open in 2025.
The move comes despite tightening U.S. export restrictions aimed at limiting China’s access to advanced chipmaking technology.
With China accounting for 36% of ASML’s total sales in 2024, the Dutch company remains deeply invested in the region, even as geopolitical tensions grow.
The new facility aims to reduce logistics time, lower spare parts costs, and improve service efficiency for Chinese semiconductor manufacturers.
However, ASML expects its China sales share to decline to 20% in 2025 due to ongoing trade restrictions. Despite this, the company maintains a positive outlook, projecting €30 billion to €35 billion in revenue for 2025, driven by strong demand for AI-driven semiconductor technology.
https://www.yolegroup.com/product/report/overview-of-the-semiconductor-devices-industry-h1-2025
Key Takeaways
ASML to Open a New Repair center in Beijing (2025): The company plans to establish a repair and reuse center in China to reduce logistics time, lower spare parts costs, and support local semiconductor manufacturers.
China Was ASML’s Largest Market in 2024: The country accounted for 36% of ASML’s total revenue, surpassing South Korea (23%), the U.S. (16%), and Taiwan (15%).
China’s ASML Sales Share to Drop to 20% in 2025: Due to tightening U.S., Dutch, and Japanese export restrictions, ASML expects its revenue from China to decline significantly.
U.S. Export Controls Impact Semiconductor Equipment Makers: While ASML still ships DUV machines to China, it is banned from exporting EUV systems.
Meanwhile, Applied Materials lost $400 million in revenue after halting services for some Chinese customers
ASML Remains Optimistic About 2025 Growth: The company forecasts revenue of €30 billion to €35 billion, expecting 15% year-on-year growth due to strong demand for AI-driven semiconductor production.
ASML’s Growing Footprint in China
ASML is the world’s leading supplier of lithography machines, essential tools for manufacturing advanced semiconductor chips.
While U.S. regulations have blocked ASML from selling its extreme ultraviolet (EUV) lithography machines to China, the company continues to ship its deep ultraviolet (DUV) systems, which are still critical for semiconductor production.
According to Chinese media outlet IcsMart, ASML’s new Beijing repair center will:
- Reduce logistics time by offering localized repair services.
- Lower spare parts costs for Chinese semiconductor manufacturers.
- Minimize environmental impact by cutting international transportation.
ASML already operates repair centers in South Korea, Taiwan, the U.S., and the EU. This new facility in Beijing further integrates ASML into China’s semiconductor supply chain, ensuring better support for local manufacturers despite increasing trade restrictions.
China Becomes ASML’s Largest Market in 2024
ASML’s 2024 annual report highlights the growing significance of the Chinese market:
| Country | Revenue Share (2024) |
|---|---|
| China | 36% |
| South Korea | 23% |
| U.S. | 16% |
| Taiwan | 15% |
Despite ongoing trade restrictions, demand for ASML’s DUV machines exceeded supply, particularly in China. The country’s booming memory chip industry and AI-driven semiconductor investments contributed to this surge in demand.
However, ASML noted that China’s sales growth in 2024 was partly due to a backlog of orders from previous years.
The company expects its China sales to decline to 20% in 2025 as these backlogs clear and export restrictions tighten further.
Impact of U.S. Export Controls
The U.S. has led global efforts to restrict China’s access to advanced chipmaking tools, with the Netherlands and Japan also enforcing export bans. These restrictions specifically target ASML’s most advanced EUV lithography systems, which are crucial for manufacturing high-performance chips used in AI, data centers, and smartphones.
However, while ASML faces export bans on EUV machines, it is still allowed to sell certain DUV lithography systems to China. These machines are widely used in producing mature-node chips, which power a vast range of electronic devices.
Other semiconductor equipment firms have not been as fortunate. U.S.-based Applied Materials has been forced to halt equipment maintenance services for some Chinese customers, resulting in an estimated $400 million revenue loss in fiscal year 2025, according to Bloomberg.
ASML’s Future Growth Despite Challenges
Despite geopolitical challenges, ASML has maintained its full-year sales forecast, expecting revenue between €30 billion and €35 billion in 2025—a 15% year-on-year increase at the midpoint.
Several factors are driving ASML’s growth:
- AI Boom: The demand for AI chips is skyrocketing, leading to increased investment in semiconductor manufacturing.
- Global Chip Shortage Recovery: Semiconductor firms are ramping up production to meet long-term demand.
- EUV Expansion: ASML is set to ship its first next-generation high-numerical-aperture (High-NA) EUV machine in the coming months, with mass production expected in 2026.
Conclusion
ASML decision to open a new repair center in Beijing reflects its long-term commitment to the Chinese market, even as it faces export restrictions and geopolitical challenges.
While the company anticipates a decline in its China sales share to 20% in 2025, the overall demand for semiconductor equipment remains strong due to AI-driven chip production.
As the global chip war intensifies, ASML’s strategic decisions will be crucial in shaping its future success. Investors and industry players will closely watch how the company navigates evolving trade policies, technology restrictions, and emerging semiconductor trends.
