ASML Faces Shifting Demand Amidst China’s Chipmaking Shift
Europe’s tech powerhouse ASML is bracing for a substantial dip in Chinese demand for its chipmaking equipment in 2026. As Beijing pivots towards indigenous solutions in response to US trade restrictions, notable shifts are underway:
- Sales Outlook: Chief Executive Christophe Fouquet predicts a significant decline in sales to Chinese customers, which once accounted for nearly half of ASML’s revenue.
- Market Dynamics: Despite setbacks in China, ASML remains optimistic about AI-driven investments enhancing demand for its cutting-edge lithography machines globally.
- Technological Edge: The company is the sole provider of extreme ultraviolet (EUV) photolithography equipment essential for advanced chip production.
- Future Forecasts: Q4 2025 is anticipated to see a sales increase, bolstered by new funding in machine learning.
ASML’s situation illustrates the larger trend of tech companies evolving in a rapidly changing geopolitical landscape.
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