[News] ASML Sees Sharp 2026 China Sales Drop but Says Total Revenue Won’t Fall Below 2025

According to Reuters, ASML warned of a sharp decline in demand from China in 2026, even as its third-quarter bookings exceeded market expectations. The report, citing CEO Christophe Fouquet, noted that while ASML does not expect its overall 2026 net sales to fall below 2025 levels, it foresees a significant drop in sales from China. Fouquet added that more details on the 2026 outlook will be shared in January.

As highlighted by Bloomberg, ASML reported that China accounted for 42% of its total net sales in the third quarter, up from 27% in the previous quarter, making it the company’s largest market during the period.

In addition, according to Bloomberg, ASML is also likely to be affected by China’s newly tightened rare-earth export curbs. ASML, which holds a near monopoly on advanced lithography systems, relies on Chinese-origin rare earths for critical components.

ASML reported quarterly bookings of €5.4 billion, slightly exceeding analysts’ estimates of €5.36 billion, including €3.6 billion from EUV systems, as noted in its press release. The company said its third-quarter net sales of €7.5 billion and gross margin of 51.6% were in line with guidance, according to Investing.com.

Meanwhile, as noted by Investing.com, ASML reaffirmed its full-year 2025 outlook, projecting around 15% total net sales growth from 2024 and a gross margin of about 52%. The company expects fourth-quarter net sales between €9.2 billion and €9.8 billion, with a gross margin of 51%–53%, signaling a strong finish to the year. The company notes continued momentum in AI-related investments, with the trend expanding to more customers across both leading-edge logic and advanced DRAM, as its press release indicates.

ASML Ships First Advanced Packaging Tool, Deepens AI Push

In its press release, ASML also announced the shipment of its first product designed for advanced packaging—the TWINSCAN XT:260, an i-line scanner offering up to four times the productivity of existing systems. In addition, it also highlighted a partnership with Mistral AI, aimed at embedding AI across its portfolio to enhance system performance, productivity, and customer yield.

Read more

• [News] China’s Toughest Rare-Earth Rules Hit Global Chip Supply: TSMC, ASML, Samsung on Alert
• [News] SK hynix Reportedly Doubling EUV Fleet by 2027, Potentially Set to Rank Third Globally

(Photo credit: ASML)