ASML announced its latest 2024 financial report, with net sales reaching €28.263 billion, a year-on-year increase of 2.55%, marking a record high. The gross margin stood at 51.3%, remaining flat year-on-year, while net profit was €7.572 billion, down 3.41% year-on-year.
ASML shipped a total of 418 lithography machines throughout the year, including 44 EUV lithography machines and 374 DUV lithography machines. Additionally, it sold 165 metrology and inspection systems.
In terms of revenue sources, mainland China contributed €10.195 billion in 2024 (approximately ¥79.771 billion), accounting for 36.1% of ASML’s total revenue, far ahead of other regions.
South Korea followed with €6.409 billion (22.7%), the U.S. with €4.522 billion (16.0%), Taiwan with €4.354 billion (15.4%), Europe with €1.3 billion (4.6%), and Japan with €1.156 billion (4.1%).
Compared to 2023, ASML’s revenue from mainland China grew significantly by 14%, with its share increasing by almost 10 percentage points.
Compared to 2022, the revenue from China increased by approximately 2.5 times, as its share was less than 11% at that time.
ASML noted that insufficient market demand and inadequate wafer fab readiness led to a delay in customer demand for EUV lithography machines. However, demand for DUV lithography machines still exceeded supply capacity, with particularly strong demand from the Chinese market.
01
Establishing a Repair Center in Beijing
The report also mentioned ASML’s plan to further invest in enhancing its global equipment repair capabilities to align with the company’s growth. “In 2025, we plan to open a new reuse and repair center in Beijing (China), marking another significant advancement in the reuse manufacturing industry.”
Currently, ASML has repair centers in Asia (South Korea, Taiwan, and mainland China), the U.S. (Wilton, San Diego, and Vancouver, Washington), and the EU (Veldhoven). The company collaborates with local suppliers and specialized repair partners to build localized ecosystems.
ASML stated that by conducting repairs and reuse activities near the locations where materials are needed, it can reduce logistics time, spare parts inventory costs, and environmental impact.
ASML also announced earlier that starting in 2025, it will no longer disclose new order intake on a quarterly basis. CFO Roger Dassen explained at a press conference that quarterly order figures fluctuate and do not accurately reflect business trends. However, the company will continue to publish annual backlog figures.
02
VOA Exclusive Visit to ASML’s Headquarters
A special correspondent from Voice of America recently visited ASML’s headquarters in Veldhoven, the Netherlands. This city is separated from Eindhoven by just one street, making them feel like twin cities. As a result, many people mistakenly believe that ASML is based in Eindhoven.
In Veldhoven, ASML’s buildings and facilities occupy almost half of the city. The industrial campus is massive, and it is still under construction. A female employee at a nearby gas station convenience store told reporters that ASML’s ongoing development is crucial to the city.
At a restaurant near the street separating Veldhoven and Eindhoven, the reporter spoke with Paul, a neurosurgeon working at a hospital in Eindhoven. He has friends working at ASML and shared that ASML originated from another Dutch tech giant—Royal Philips. Philips played a key role in the development of Eindhoven.
He said, “Now, ASML has become Veldhoven’s largest company, surpassing Philips. ASML was founded in 1984 when Veldhoven was still a small village. Now, it has grown into a city. However, local residents are not entirely pleased with this so-called development.”
When pressed for details, he explained, “ASML’s rapid expansion has caused problems for residents, such as traffic congestion, high housing and commodity prices, and environmental issues. While ASML brings jobs and income, life was already comfortable before ASML’s rise. Apart from business owners, most ordinary residents are not fond of these changes.”
03
China Becomes ASML’s Largest Customer
ASML’s 2024 annual report revealed that its total revenue reached a record-breaking €28.3 billion, with system equipment sales amounting to €21.769 billion. Mainland China accounted for 41% of ASML’s system equipment sales, far surpassing South Korea (21%), the U.S. (17%), and Taiwan (11%).
China purchased over 40% of ASML’s lithography machines, exceeding the combined purchases of its second and third-largest customers, the U.S. and South Korea.
This data indicates that China is not only ASML’s largest buyer but also the world’s largest lithography machine importer. ASML holds an 85% global market share in lithography machines, including a 95% share in high-end lithography equipment. In the cutting-edge EUV (Extreme Ultraviolet) lithography market, ASML has a 100% monopoly. China’s aggressive procurement in 2024 has further solidified its position in the global semiconductor supply chain.
04
China: An Indispensable Market for ASML and the Netherlands
China is currently the Netherlands’ third-largest trading partner and its largest source of imports from Asia. Meanwhile, the Netherlands is China’s second-largest trade partner in the EU.
According to the Chinese Ministry of Foreign Affairs, the bilateral trade volume between China and the Netherlands reached $117.09 billion in 2023. China’s exports to the Netherlands amounted to $100.19 billion, a 14.6% year-on-year decline, while imports from the Netherlands reached $16.9 billion, marking a 35.1% increase. In the first nine months of 2024, bilateral trade totaled $82 billion, down 7.2% year-on-year, with Chinese exports at $68.1 billion (down 10.9%) and imports at $13.9 billion (up 16.0%).
In 2023, China imported approximately $7.25 billion worth of ASML lithography equipment, accounting for about 43% of the Netherlands’ total exports to China that year. In the first nine months of 2024, China’s purchases of ASML lithography machines reached approximately €7 billion, exceeding 50% of the Netherlands’ exports to China during the same period.
ASML’s media relations manager, Sander Asink, highlighted the importance of the Chinese market in an interview.
“We have many Chinese employees, many Chinese customers, and offices in China. So, this is a very important market for us, and we hope to continue serving it,” he said.
However, he noted that China’s 40% share of ASML’s sales in 2024 was partly due to other customers delaying or declining product deliveries. He emphasized that this is only a temporary phenomenon. He stated that ASML plans to keep China’s market share below 20% of its total sales after 2025, while aiming for total revenue of €44-60 billion by 2030. However, he did not specify how ASML would achieve this revenue target without a significant increase in sales to China.
Related:
Disclaimer:
- This channel does not make any representations or warranties regarding the availability, accuracy, timeliness, effectiveness, or completeness of any information posted. It hereby disclaims any liability or consequences arising from the use of the information.
- This channel is non-commercial and non-profit. The re-posted content does not signify endorsement of its views or responsibility for its authenticity. It does not intend to constitute any other guidance. This channel is not liable for any inaccuracies or errors in the re-posted or published information, directly or indirectly.
- Some data, materials, text, images, etc., used in this channel are sourced from the internet, and all reposts are duly credited to their sources. If you discover any work that infringes on your intellectual property rights or personal legal interests, please contact us, and we will promptly modify or remove it.
