The spectre of US-imposed technology export controls looms large for Dutch semiconductor machinery maker ASML Holding NV (NASDAQ:ASML) as its third-quarter results approach.
ASML, which is the only company in the world operating at the apex of the semiconductor machinery industry, has found itself stuck in the middle of political wrangling between the two nations.
These export controls have limited what ASML is allowed to sell into the Chinese market.
Specifically at stake are ASML’s extreme ultraviolet (EUV) lithography machines. That might not mean anything to the average person, but this will- these machines are an essential component of the AI chipmaking industry and have a price tag as high as $370 million each.
Shareholders, therefore, will be hunting for details on the impact of this issue on ASML’s bottom line.
As the results approach, ASML’s internal forecasts predict total net sales between €6.7 billion and €7.3 billion with a gross margin between 50% and 51%.
Research and development costs are projected to be approximately €1.1 billion, while selling, general, and administrative costs are estimated at around €295 million.
"We currently see strong developments in AI, driving most of the industry recovery and growth, ahead of other market segments," ASML Christophe Fouquet told investors in July.
Results are due on Wednesday, 16 October.