ASML’s chip equipment sales to China soar 109% despite US export curb push

Dutch chip equipment company ASML reported a staggering 109% increase in sales to China during the third quarter, marking a significant surge in its business despite US efforts to impose tighter export restrictions. This growth catapulted China's share of ASML's machine sales to 23%, up from 14% in the previous quarter. The company anticipates China to contribute about 20% of its total sales this year, a substantial increase from the previous year.

ASML's CEO, Christophe Fouquet, highlighted the robust demand for the company's advanced extreme ultraviolet (EUV) machines, which are projected to see over 45% growth in 2026. The non-EUV business is also expected to expand by 20%, with installed base revenue rising a remarkable 50%. ASML is planning a 30% capacity expansion in low-NA EUV systems over the next two years, but this may not be enough to keep pace with the expected demand.

The company's CEO stated that discussions with customers are shifting beyond 2027, with strong interest in orders for 2028 and potentially even 2030.

Despite the geopolitical challenges, ASML raised its full-year 2026 sales forecast to €44 billion (US$49.25 billion) and maintained its gross margin forecast at around 56%. CFO Roger Dassen noted that revenue in the fourth quarter is expected to reach between €14.2 and €15.2 billion, with strong momentum building up. ASML shares surged over 1% in Amsterdam following the announcement of these impressive results.