Release Date: April 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you consider flexibility around the pricing of high-NA to facilitate adoption? A: Christophe Fouquet, CEO: The main reason for not adopting new systems quickly is tool maturity, not price. We focus on achieving maturity to ensure optimized cost of technology. Lowering prices without maturity would create issues for customers.
Q: What kind of bookings run rate should we expect to see growth in 2025 and 2026? A: Roger Dassen, CFO: We believe 2026 will be a growth year based on technology and market demand, despite macroeconomic uncertainties. While we have a strong backlog, additional bookings are needed for growth, but we won't quantify the exact run rate needed.
Q: Is China still expected to account for around 25% of sales this year? A: Roger Dassen, CFO: Yes, we expect China to be slightly over 25% of sales this year, with demand particularly strong in the mainstream business. The backlog composition for China remains in the 20% to 25% range.
Q: How are customer conversations regarding tariffs affecting delivery schedules? A: Christophe Fouquet, CEO: Tariff announcements have not changed business conversations with customers. There is uncertainty, but discussions have not fundamentally altered business planning or delivery schedules.
Q: Can you provide an update on the adoption of single-exposed EUV versus multi-patterning? A: Christophe Fouquet, CEO: Adoption is happening gradually. Each new customer node with better cost of technology, like the 3800E, presents an opportunity for more single-exposed adoption. This is an ongoing effort with customers.
Q: What is the expected impact of tariffs on gross margins for the full year? A: Roger Dassen, CFO: It's difficult to predict the full-year impact due to uncertainty around tariffs. We aim to minimize exposure and believe the tariff burden should be shared across the value chain, not solely by ASML.
Q: How does the geographic diversification of fabs affect your business? A: Roger Dassen, CFO: Dispersed fabs may lead to increased capacity needs, potentially driving semiconductor demand. However, tariff uncertainties add complexity to this scenario.
Q: What are the key milestones for the EXE platform from R&D to production? A: Christophe Fouquet, CEO: There are three phases: R&D validation with EXE5000, early production testing with EXE5200, and high-volume manufacturing expected in 2027-2028. Progress is ongoing with customers.
Q: How does the order volatility relate to tariff uncertainties? A: Roger Dassen, CFO: Order volatility is more related to the lumpiness of order intake rather than tariff uncertainties. Major orders require significant governance, affecting subsequent quarters' order intake.
Q: How are you addressing the US tariffs in relation to encouraging semiconductor manufacturing in the US? A: Roger Dassen, CFO: The complexity of tariffs is recognized by all parties, including the US administration. There is a need for more time to understand how to reconcile onshoring goals with tariff impacts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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