ASML announced the expansion of DUV and EUV lithography equipment
At ASML’s Investor Day meeting recently, CEO Peter Wennick and Executive Vice President and Chief Financial Officer Roger Dassen presented ASML’s long-term strategy, megatrends, market needs, capacity plans, and business models to support the future growth of the company. Importantly, ASML plans to adjust its production capacity to meet future demand and prepare for cycles, while sharing risks and rewards fairly with all stakeholders.
Image: ASML
According to ASML’s new plan, the annual production capacity will be increased to 90 EUV (extreme ultraviolet) lithography systems and 600 DUV (deep ultraviolet) lithography systems from 2025 to 2026. At the same time, the production capacity of High-NA EUV systems will also be increased to 20 units from 2027 to 2028. In the third quarter of 2022, ASML received new orders for the TWINSCAN EXE:5200 system from customers of current EUV lithography systems, and the first customer to purchase the High-NA EUV system is Intel, which is expected to start in 2025 put into operation.
ASML is also expected to have huge growth opportunities based on different market scenarios to achieve the following:
-
2025: annual revenue between approximately €30 billion and €40 billion with a gross margin between approximately 54% and 56%
-
2030: annual revenue between approximately €44 billion and €60 billion with a gross margin between approximately 56% and 60%
Not only has ASML raised its revenue target, but it also intends to continue to return substantial cash to shareholders through a combination of dividend increases and share buybacks.
To this end, ASML has announced a new share repurchase plan, effective from November 11, 2022, and will be executed before December 31, 2025. It plans to buy back up to 12 billion euros of shares, of which a total of up to 2 million will be used to pay for the employee stock plan.
Stimulated by a series of good news, ASML’s stock price has risen recently, which has also driven up the stock prices of other semiconductor equipment stocks.
