ASML Q1 2025: China Grabs 27% Share, But EUV Access Remains Years Away

ASML’s Q1 2025 results reveal a surprising 27% sales contribution from China, fueled by robust demand for deep ultraviolet (DUV) lithography machines.
ASML’s Q1 2025 results reveal a surprising 27% sales contribution from China, fueled by robust demand for deep ultraviolet (DUV) lithography machines.
ASML forecasts China will account for more than 25% of its 2025 sales, with strong demand for DUV chipmaking tools despite U.S. tariff threats. Let's read between the lines.
Despite a massive $41 billion investment, China could not overcome ASML’s monopoly on extreme ultraviolet (EUV) lithography technology.
ASML is set to open a new repair hub in Beijing in 2025, reinforcing its presence in China despite U.S. export restrictions.
“By banning the export of EUV, China will lag 10 to 15 years behind the West. That really has an effect.”
TSMC’s $350 million investment in ASML’s high-NA EUV lithography machinery is set to bolster its manufacturing capabilities, enabling next-generation chip production.
ASML, a leader in semiconductor manufacturing equipment, anticipates a 45% revenue increase in 2025, fueled by expanding production of extreme ultraviolet (EUV) systems.
The lab's purpose is to accelerate the development and adoption of High NA EUV lithography. This is a next-generation technology that is expected to enable the production of even smaller and more powerful computer chips.
These figures reflect a year-on-year decline of 21.6% in net sales and 37.4% in net income. Notably, net bookings for ASML's machinery, a key metric, decreased by 4% compared to the previous year,
As US export controls on China continue to cast a shadow over the industry, semiconductor equipment manufacturers must remain vigilant and adaptive in navigating this challenging terrain.