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

Dutch chip equipment firm ASML reported a staggering 109% increase in sales to China in the third quarter, despite mounting pressure from the United States for stricter export controls on less advanced chipmaking machinery. This surge propelled China's share of ASML's machine sales to 23%, up from 14% in the previous quarter. The company anticipates China to make up about 20% of its total sales this year.

ASML's sales to China have more than doubled during the past quarter, even as US authorities seek to tighten restrictions on chipmaking machines sold to Beijing. Dutch Prime Minister Rob Jetten has been pushed to reach an agreement with Washington over the proposed Match Act, which aims to restrict ASML's exports of less advanced lithography machines to China.

Despite these geopolitical hurdles, ASML has raised its full-year 2026 sales guidance to €44 billion (US$49.25 billion) and maintained its gross margin forecast at around 56%. The company's CFO, Roger Dassen, hinted at further capacity expansion plans, stating that revenue in the fourth quarter was expected to range between €14.2 and €15.2 billion. ASML expects a 36% growth in 2026 revenue, driven primarily by robust demand for its advanced extreme ultraviolet (EUV) machines.

Sales of non-EUV products are forecast to increase by 20%, with installed base business revenue rising 50%. ASML's CEO, Christophe Fouquet, said growth momentum is expected to continue into 2027 and 2028, and the company plans to expand its capacity by 30% over the next two years. However, Fouquet acknowledged that more needs to be done to meet anticipated demand, and ASML is exploring ways to further extend its capacity in 2028 and beyond. ASML's shares rose by more than 1% in Amsterdam following the announcement.