SHARES IN ASML, the world’s top maker of equipment for manufacturing computer chips, have risen after the company reported sales of €1.23 billion in the first quarter, in line with analysts’ expectations.
Revenues were down 20 per cent year on the year as chip manufacturers await the next technological advance in the chip lithography industry, the transition to so-called extreme ultraviolet (EUV) machines.
“We executed H1 2012 as planned and expect sales to remain steady in the second half,” chief executive Eric Meurice said in a statement. The company estimates revenues in the second half of between €2.2 billion and €2.4 billion.
ASML expects to be the first chip lithography maker to ship a commercial EUV machine by the end of 2012 or early 2013. This month Intel announced a $4.1 billion investment in ASML, of which $1 billion will be to help fund ASML’s EUV development.
TSMC and Samsung, two other big chipmakers, said they were also in talks with ASML over taking up to a 10 per cent stake in the Dutch semiconductor equipment maker.
ASML had offered all three companies the same terms to buy up to 25 per cent of itself, as well as contributing to research and development of EUV machines. The deal with Intel shows that ASML is able to transfer at least a part of the massive RD burden of developing new machinery to make chips on to its customers.
ASML’s operating income fell 19 per cent year on year, to €390 million. Net profits were also down 19 per cent, to €342 million.
Shares have risen nearly 70 per cent in the past year as it has consolidated its technological lead over rivals and maintained a dominant market share. The revenues fall is mainly due to poor macroeconomic conditions, analysts say.
Intel on Tuesday warned of lower-than-expected revenue in the second half of the year. PC supply chain manufacturers have also cautioned that an expected sales revival after the October launch of Windows 8 may be damped by the weak economy.
Tom Muller of Theodoor Gilissen however said ASML was “coming through this very difficult transition period with flying banners”. – Copyright The Financial Times Limited 2012
