ASML Photo: VCG

Chipmaking equipment producer ASML on Wednesday announced better-than-expected results for the fourth quarter and full year of 2023, while warning that US export controls would affect its sales in China by 10-15 percent in 2024.

For 2023, ASML reported 27.6 billion euros ($30 billion) in revenue, up 30 percent year-on-year. Its gross profit margin was 51.3 percent, with a net profit of 7.8 billion euros, and the unshipped order backlog reached 39 billion euros.

Business with China in 2023 was extremely robust and strong, Roger Dassen, executive vice president and chief financial officer of ASML, said in a statement sent to the Global Times on Wednesday.

The Dutch company has been caught in the broader technology battle between the US and China. On January 2, ASML said that the Dutch government had partially revoked an export license for the shipment of some chipmaking equipment to China, following US export restrictions.

Exports of NXT:2050i and NXT:2100i lithography systems in 2023 were affected, the company said.

"It can be anticipated that in 2024, we will not obtain export licenses for shipping NXT:2000i and higher immersion equipment to China. Additionally, certain advanced chip manufacturing wafer fabs in China will be unable to obtain licenses for shipping NXT:1970i and NXT:1980i immersion equipment," Dassen said.

ASML previously said that the US export restrictions would affect 10-15 percent of China sales. There would be a similar impact in 2024, Dassen said.

"However, we can still observe strong demand in the mature process markets within the end-user market," said Dassen.

The US containment strategy related to high-end chips has failed to prevent Chinese companies from making their own 5G models, so it tightened the curbs, Zhang Hong, a veteran industry observer, told the Global Times on Wednesday.

Zhang noted that the move will only disrupt global industry chains and hit global technology giants' profits, and cause them to lose market shares in China.

In response to the Dutch government's blocking of ASML exports to China, Chinese Foreign Ministry spokesperson Wang Wenbin on January 2 said that China strongly opposes the hegemonic and bullying practices of the US, which seriously violate international trade rules, undermine the global semiconductor industry structure and affect the security and stability of international industry and supply chains.

Wang urged the Dutch side to respect the spirit of contract and take concrete steps to protect the shared interests of China and the Netherlands and the companies of the two countries, adding that China will resolutely safeguard its legitimate rights and interests.

"The semiconductor sector is a highly globalized industry. In a deeply integrated world economy, the US actions will surely boomerang," Wang said.

Global Times